Demand in recent years for Veterans Affairs (VA) mortgages has soared, and this is no surprise: Most VA loans do not require a down payment, there is no minimum credit score, and are offered to veterans and active members of the military. A VA home loan remains one of the major options for borrowers who lack down payment funds, so they make home ownership available to millions of vets and military members.
Veteran loan programs remain bold and provide homeownership opportunities that benefit military families. Rates have dipped to near record levels, so your timing could not be much better. Many VA mortgage lenders have expanded their guidelines and more a more members of the Armed Services are eligible for affordable house financing.
VA home loans are offered by private lenders and are guaranteed by the federal government, so no mortgage insurance is required
If you are a member of the military or are a veteran, there are five great reasons to consider qualifying for VA home loan financing.
Active duty military can qualify for a VA loan after only six months of service, however, reservists and National Guard members need to wait six years
Almost all current and former members of the military, including reservists and National Guard members, are eligible to get a VA loan. Also, spouses of members of the military who died on active duty can apply too. But if they are brought up for active duty, they become eligible for a VA loan after 181 days of active service.
Also, reservists, National Guard members and active duty military can become eligible after 90 days of active duty in a war period. Generally, if you have served on foreign soil in the US military, you are most likely eligible for a VA loan. To certify that you are eligible, you must obtain a VA certificate of eligibility. This can be obtained online. However, lenders say that you do not need the certificate to begin applying for VA loans; lenders can get this document for the borrower during the preapproval period.
Obviously, if you can put zero down to get a mortgage, this is a huge advantage. What’s more, a VA home loan does not require you to pay mortgage insurance premiums, as are required for FHA loans and regular home mortgages with less than 20% down payment. The Veterans Administration guarantees the option for qualified applicants to achieve 100% mortgage financing. The only other no down-payment finance option is the USDA rural loan, but you have to meet the standards of rural housing.
This benefit means you will save big on your monthly payment. For example, if you get a FHA loan with a 3.5% down payment on $200,000, you would pay around $142 for mortgage insurance each month. You can save that money and put it towards a fund to upgrade your home. Even military home buyers will have new expenses when buying a house. Typically, first time buyers will need money to pay for new furniture and home repairs are pretty click now standard as well. That famous saying, “a penny saved is a penny earned” is never truer than when a family is in the process of buying their first house. The feature of not needing a deposit on your mortgage is a huge financial advantage for military home buyers. Learn how to buy a house with no money down and bad credit.
The cost of obtaining a VA home loan is usually lower than getting other mortgages. You do still need to pay a onetime funding fee that ount of the fee varies depending upon how much you put down and what type of veteran you are.