If you are a service member, veteran, or eligible surviving spouse, you may be able to get a VA loan to help with your home purchase. Here are several important things you need to know about VA mortgages, whether you live here in Texas or anywhere in the United States.
What Is A VA Mortgage?
It’s a type of loan offered by banks, mortgage companies, and other private lenders, a portion of which is guaranteed by the U.S. Department of Veterans Affairs, or VA for short. Thanks to this guarantee, lenders are able to offer terms that are more favorable as compared to conventional loans, making it easier for veterans and service members to buy a home.
The home being purchased has to be used as your own private residence. This means that a VA loan can’t be used to purchase a house for a friend or loved one, nor can it be used for investment properties; if you use a VA loan to purchase a house, you have to live there. The home can be an existing one, or it can be new construction.
A VA mortgage can also be used for another purpose: to refinance your loan. If you’re a current or former service member, or an eligible surviving spouse, and you’re finding it difficult to continue paying your conventional loan with its existing terms, talk to a mortgage broker about using a VA-guaranteed loan to refinance your current loan. You’ll end up with better terms that’ll make it easier to make your monthly payments.
Benefits This Type Of Loan Offers
There are several reasons a veterans home loan is so attractive to current and former members of the military. They include:
- Usually No Down Payment Required: In many cases, the borrower does not need to make a down payment. There are some lenders, however, who require a certain amount for a down payment, generally less than what’s required with a conventional loan.
- Mortgage Insurance Is Not Required: Because the VA guarantees a portion of the loan, you are not required to carry private mortgage insurance (PMI), saving you money.
- Safety Requirements Must Be Met: When purchasing a home using a VA loan, certain property requirements must be met. This means that, once everything’s approved and the sale closes, you’ll be moving into a house that’s safe, sanitary, and structurally sound.
- VA Staff Help Is Available: If you become delinquent on your VA home loan, you can get in touch with a Veterans Affairs office for assistance.
- Closing Cost Limits: The VA sets limits on how much you can be charged for closing costs on a VA loan.
- No Early Payoff Penalty Fees: If you pay off your loan early, your lender can’t charge you penalty fees.
These benefits make it very attractive for many current and former members of the military to at least look into loans for veterans as an alternative to conventional loans.
Who Can Get It
As we’ve stated earlier, you are eligible for loans for veterans if are a current service member, a veteran, or a surviving spouse. Just because you’re eligible, however, doesn’t mean you’ll qualify. If you are eligible, talk to a mortgage broker to see if you qualify.
Reasons you may not qualify include, but are not limited to, the following:
- Low Credit Score
- Unstable Income
- Non-qualifying Military Status
- Application Denial
If you’re not sure if you qualify, or you’ve been denied a VA home loan in the past, the best thing to do is make an appointment with an expert mortgage specialist to learn what you can do to qualify. At Manuel Mortgage, we are dedicated to helping our service members and veterans get the VA loan they deserve. We will work hard on your behalf to help you qualify.
Give Yourself Plenty Of Time
The process of acquiring a VA home loan can be a lengthy one, so give yourself ample time. The best thing you can do is begin to work with a loan broker at the same time, or even slightly before, you begin your home search. This way, you’ll have a better idea of whether or not you qualify, what the terms may be, what price range you should be looking at, and other considerations that may impact your home search criteria.
Be aware that VA appraisals may require that the seller make substantial repairs on a home before you’d be allowed to purchase it. In these cases, the seller can decide it’s not worth the effort, and may refuse your offer. Your safest bet is to make offers on homes that appear to be in good condition and are structurally sound, otherwise delays or seller refusal to make the necessary repairs can happen.
Manuel Mortgage Can Help With Your VA Loan
As you can see, VA loans offer numerous benefits to those who qualify, but there are some potential risks and delays associated with this type of loan as well. To determine what type of loan is best for you, whether it’s a VA loan, an FHA loan, a conventional loan, or something else, get in touch with Manuel Mortgage today. We are well-versed in the different types of loans available here in Texas, and we can guide you so you end up with a workable loan that offers you the best terms possible. Reach out to Manuel Mortgage to talk with our mortgage specialists today!