Are You a Veteran? Do You Want to Buy a Home?
Purchasing a home is a big deal. Purchasing a home when you are a veteran is an even bigger deal. Why? Well, for one, just transitioning from military life to a civilian one has its unique challenges. Now try adding in the desire to buy a home on top of that.
And then you have your income history. Obviously, it helps to have a steady and reliable income to buy a home. This helps your lender determine whether or not you have the means to pay back your mortgage. But, when moving from being employed in the military to attempting to get that steady income after retiring from active service can be difficult. Some lenders can be a little too focused on the nature of your employment history, and the prospect of continued employment, rather than the overall goal of home ownership.
So what do you do? Happily, there is a loan program specifically designed to give back to our trusted veterans. And that program is called the VA Loan.
Who Can Get a VA Loan?
As the name indicates, this is a loan designed for:
- Active service members
- Certain members of the National Guard and reservists
- Certain surviving spouses of veterans who have passed away
The VA Loan – What’s to Love?
A lot, actually! Take a look at these facts:
- No down payment: Yes, you read that right. NO down payment! Just remember that there are maximums as to the price you borrow for the home. But no worries – you’ll find the right house at a great price no matter where you live.
- No mortgage insurance: Generally, if you don’t have 20% of the house price as your down payment, you have the “fun” of paying mortgage insurance on top of your mortgage payment. Just yet another expense, huh? Actually, nope. Even without zero down payment, you still don’t have to pay mortgage insurance on a VA loan. Pretty sweet!
- Low interest rates: OK, so you may not need a down payment, but you still have to pay to borrow money for a home. Good news – the interest rates for a VA loan are also low. How low? Often, they can be less than the rates for a conventional mortgage. Really!
- Flexible credit requirements: What happens if your credit isn’t…quite as great as it should be? That’s the catch, right? Wrong. Unlike other loan products, VA loans do not – let me repeat – do not – need a minimum credit score. Of course, it is better to have higher credit score, but your lender will examine your file as a whole, and not ding you if the only issue is a lower credit score.
- Low closing costs: So even if you can afford the home itself, you still have to close on the home. And that means more money. Money for the appraisal, for the application, for escrow, for the credit report, home inspection…and the list goes on. Where will the money to pay for all of this come from? Well, if you are getting a VA loan, know that your closing costs have a limit to them. And sometimes the lender has to pay these costs, or some of these costs may get rolled into your mortgage so that you barely know that they are there. Also, there are other programs huddled about, waiting to help you with closing costs. Ask MBA Mortgage what these programs are.
So What Next?
Now that you know about the great VA loan program, your next step is to contact a mortgage broker like MBA Mortgage. MBA Mortgage will assist you in finding those lenders who are eligible to offer VA loans, and help you figure out which one has the best rates, conditions, and financing for your particular situation.
Veterans have given a lot to our wonderful country. It’s time to give back. As a veteran owned company, we strive to help our military members enjoy the benefits of home ownership affordably. Give us a call, and let’s get started today!