Are you thinking about getting a VA loan? You should ignore all difficulties then.
Created before the close of World War II, the VA home loan advantage has assisted billions of veterans, service members and military families achieve the dream of being homeowners. Today, in many ways, it’s more substantial than ever.
VA loan volume has soared in the wake of the Great Recession. It is driven in large part by historically low rates and increasingly tougher lending requirements. The VA loan provides crucial financial benefits that make home buying possible. Possible for a score of veterans who might not otherwise qualify.
INCREDIBLE ADVANTAGES OF VA HOME LOANS
Here’s a look at three of the biggest benefits of these long-cherished home loans:
NO DOWN PAYMENT WITH A VA HOME LOAN
Currently, most home loan programs need some type of down payment. Although I don’t need 20% down to buy a home. The conventional home loan generally needs a minimum down payment between 3% and 5%. I’ll need a minimum of 3.5% down for an FHA home loan.
A VA home loan, however, is an exception to the rule. If I have full entitlement, a VA loan will enable me up to 100% financing. It indicates that I can purchase a house with absolutely no down payment. This allows many people to purchase sooner and I don’t have to drain my savings on a home purchase.
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BUY A HOME WITH NO MORTGAGE INSURANCE
Another notable advantage of a VA home loan is that I don’t pay mortgage insurance. Mortgage insurance is typically required when a borrower puts down less than a 20% down payment. This is an annual premium paid monthly by the borrower. Yet the insurance protects the lender in the event of default.
Private mortgage insurance with a conventional loan ranges from 0.55% to 2.25% of the original loan amount per year. The FHA mortgage insurance averages around 0.85% of the original loan amount per year.
Despite being a “no money down” mortgage plan, VA loans don’t need that I pay mortgage insurance. This can help keep my monthly payment and mortgage costs affordable.
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ENJOY FLEXIBLE CREDIT REQUIREMENTS
As with any loan plan, my credit history determines whether I qualify. The affirmative news is that the U.S. Department of Veterans Affairs doesn’t set a minimum credit score for approval. Instead, each mortgage lender decides its own minimum credit score. On average, lenders set their minimum between 600 and 660.
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INTEND TO APPLY FOR THE VA LOAN?
If you’re ready to get started, or just want to get more information on the process, the first step is to get multiple rate quotes with no obligation. You can then discuss qualifications, debt to income ratios, and any other concerns you have about the process with the lenders.