What to Expect When Securing a New Home Loan The mortgage application and approval process can be daunting, but an understanding ofthe steps involved can help mitigate some of those concerns.
Everything You Need To Know About VA Loans
The Veterans Affairs (or VA) loan is a specific loan program to help veterans, active-duty service members and their families purchase a home. Authorized by the US Department of Veterans’ Affairs, this loan option allows military families to qualify for a home loan with fewer restrictions and little-to-no money down.
Do I Qualify For a VA Home Loan?
While there are far less restrictions for qualifying for a VA loan in comparison to other loan options, there still are a few stipulations. To decide if you will qualify for a VA loan, ask yourself these three questions:
1. Are you a current or ex military personnel, or a surviving spouse of one?
2. Do you have no past record of loan defaults within the last 12 months?
3. Have you not declared bankruptcy within the last two years?
Why Should I Get A VA Loan?
VA loans are fully backed by the government, and offer a variety of advantages for your home purchase or mortgage refinance. Here are some advantages of VA Loans:
• No Money Down
With a VA home loan, you don’t have to include a down payment if you can’t afford to, unlike conventional loans which typically require at least 10-20% down.
• No Private Mortgage Insurance (PMI)
Typically, private mortgage insurance (or PMI) normally adds 0.2-0.9% of expenses to your monthly mortgage payments when you put less than 20% down. With a VA loan, you’re not required to have PMI, saving you more money on your home loan.
• Fewer Restrictions
As we mentioned above, VA loans come with fewer restrictions, making it easier for you to qualify for one. With a VA loan, you’re allowed a higher debt-to-income ratio and have more leniency with your credit score.
• Easy Refinance
Due to the VA Streamline Refinance Loan Program, you are able to refinance your VA loan to a lower rate with less funding fees than a regular refinance.
If you answered “yes” to all three of these questions, chances are that you qualify for a VA loan.