The Surprising Perks of VA Home Loans
Calling all veterans! Did you know that you could be eligible for a VA loan that will get you awesome perks when it comes to your mortgage payments? If you don’t know about your loan options as a veteran, then keep reading to find out more about what a VA loan could do for you.
What is a VA loan, anyway?
A VA loan is simply a mortgage loan guaranteed by the U.S. Department of Veterans Affairs and can be issued by qualified lenders. Since its inception, the VA Loan program has helped place more than 20 million veterans and their families into an affordable home financing situation through its distinct advantages over traditional mortgage loans.
How do I know if I’m eligible for a VA loan?
You are eligible for a VA loan if you meet any of the following requirements:
You have served 90 consecutive days of active service during wartime, OR
You have served 181 days of active service during peacetime, OR
You have more than 6 years of service in the National Guard or Reserves, OR
You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
So, what exactly are the big advantages of a VA loan?
No mortgage insurance necessary
For one thing, there are NO monthly mortgage insurance payments with a VA loan! Mortgage Insurance can be pretty expensive, so this is a huge bonus when it comes to your monthly mortgage payments. Even if you put zero down on your home, this benefit still applies.
If you are a disabled veteran or receive disability checks, your funding fee will be completely waived - meaning your mortgage payments won’t have any extra fees or mortgage insurance added.
Lower interest rates
VA loan rates are also pretty competitive, often coming in at lower interest rates than conventional loans. Lower rates + no mortgage insurance payments means that a VA loan will most likely be the cheapest loan option you can choose.
Great down payment options
With a VA loan, you can actually close on your mortgage with no money down on a home up to $417,000 here in Central Texas. If you are buying a home that costs above that $417K amount, you only need to put down 25% of the amount you’re paying above $417. For example: If you were purchasing a home for $517K and go with a VA loan, that’s a $100K difference, meaning you would only have to put down $25,000 - while still not paying any mortgage insurance and getting a great VA loan interest rate. No matter the price of your new home, you’ll get great down payment options if you choose VA.
Flexible credit requirements
Credit requirements are usually more flexible if you purchase a home with a VA loan. If your credit is a little lower than you’d hoped for, you can still get a loan with a credit score as low as 620, and sometimes even lower than that - without driving your interest rate up too much. Bonus: Debt-ratio rates are also great with VA loans!
To sum it up:
The ultimate goal of the VA loan program is to make it as affordable and easy as possible for veterans to get the home of their dreams. John Schutze has worked on countless VA loans and is an expert at guiding you through the process. If you believe you are eligible for a VA loan and want to learn more about it or have any questions, contact John or give us a call today at (512) 524-8310!