A Guide to Preparing for a VA Loan
Hundreds and thousands of American military service members come back home every year after serving the nation. According to a study conducted by the office of U.S. Government Accountability, it has been estimated that around one million veterans are expected to return in the next five years. Most of them are combat troops returning from conflict zones. Once back, they would look to settle down with their family in search of a happy and peaceful life. The first step towards this goal is to buy their own home. This is anticipated to boost the demand of properties in the real estate sector.
Most veterans as well as active duty members plan to buy a home in Texas due to the presence of military bases in the state. However, one of the major issues that many people face when buying a new home is the financing. In an initiative to thank the veterans and active member personnel for their selfless service, the Government has introduced VA home loans in Texas. It allows military professionals to buy a home at competitive prices.
Many service veterans are not aware of the numerous benefits that they can get by opting for a VA loan. Read on to get some idea about the details before you prepare yourself for getting a VA mortgage. We at The Davidson Group specialize in a variety of mortgage programs including VA loans. Our team of mortgage specialists have knowledge about the structure and process involved in getting VA loans.
How will VA loans help you?
VA home loans were introduced in the year 1944 to address the issues related to permanent housing. The loan enabled the veterans to get enough financing to buy a home with no down payment and a lower interest rate. It has been estimated that around 22 million Americans are eligible to apply for VA loans. It will enable countless returning veterans to finance and buy their dream home.
A VA loan is an increasingly popular option among veterans as it has the key advantage of zero down payments. The veterans also have a higher likelihood of getting qualified for a VA loan as compared to the traditional home loans. Active military personnel, veterans or spouses of service members who died while on duty need to contact a private lender. The loan will be pre-approved by the lenders after taking into consideration the income, credit and the local property taxes.
Why there are better chances of qualifying?
Most of the veterans may find it easier to qualify for VA loans whereas they may not be able to qualify for the traditional mortgages. As it is a government backed loan, it comes with a lower risk. The guarantee by the government implies that the borrowers don’t have to pay Private Mortgage Insurance (PMIs) which is usually required when you apply for traditional home loans.
While the mortgage rates are increasing for most traditional loans, VA loans are available at competitive rates. In addition to this, traditional home loans also require much higher credit scores to qualify. On the contrary, VA loans offer more flexibility in terms of rules and regulations. Some of the VA loans even require the builders to provide one year warranty to ensure safety for the veterans. These factors make VA loans a profitable option for returning veterans who plan to buy their dream home to settle down.
Darrick encourages readers to post issues that need immediate attention in terms of VA home buying; such interactions will enhance reader engagement and provide a roadmap for others.