25 Feb VA Home Loans and First-Time Homebuyers
Your first home backed by a VA Loan
For first time homeowners, right from saving up for the down payment to affording the mortgage with an interest rate, it all may sound a little too much. However, for veterans, all of that can be taken care of to quite a good extent if they go in for a VA or Veterans Affairs home loan. Not only is buying your home made easier with this, but it also helps you create a more secure future for you and your family.
Just because it is called a VA loan does not mean that the VA offers it. This loan is available at a number of VA approved lenders and institutions, and the role of the VA here is to guarantee a part of your loan.
For starters, to be eligible for such a loan, you need to be one of the following:
- A service member who is still in active duty
- A member of the national guard
- A veteran meeting requirements related to your service period and discharge
- Spouse of veterans whose death was connected to their military service
There are members of some other organizations, like Public Health service, who may qualify to get VA Loan. This also includes some veterans of foreign armies who were with the Allied forces in WWII. Getting a VA loan is not that hard for first-time homeowners and can prove to be quite beneficial as well.
Qualifying to get a VA Loan Guarantee
If you are eligible to get a VA loan as per your service record, then the next step is getting pre-qualified for it, to know the maximum amount that you would get via the loan. While there are no set standards for qualifications by the Veterans Affairs, institutions offering the loans have stricter criteria, so those buying a house for the first time may find it a little tough to get approval for their mortgages.
However, you need not have an excellent credit history to get a VA-backed loan. A credit score that is greater than 620, along with sufficient proof of your income being able to afford your monthly payments should get you the loan.
Zero down payments with easy repayment options
Not being able to afford the down payment is one of the biggest hurdles that homeowners face, but with VA loans, they need not worry about it for borrowers can finance 100% of their house without putting down any money.
Also, first-time homeowners also save a lot on their monthly payments since they do not need any mortgage insurance, as the loan is backed by the VA. On top of that, the lenders can charge for things like loan origination, costs of closing as well as appraisal fee to a limit.
Simply put, a VA loan can be one of the most affordable ways for you to get your own home and thus enjoy a comfortable life!