Being in the military comes with a lot of perks and benefits. But one of the most overlooked benefits by both Veterans and service members is buying a home through a VA loan.
A VA home loan is a loan from a private lender that is approved and guaranteed up to a certain amount by the Department of Veterans Affairs. By guaranteeing the loan, the VA is able to limit the riskiness of the loan for banks.
The result is the bank is able to provide loans to military men and women with no money down (100% financing), lower interest rates, no mortgage insurance, and with lower credit scores.
However, having stellar credit can help to attain rock bottom variable or fixed rates. For peace of mind, we always recommend getting a free copy of your credit report and check for errors before applying. If you notice anything suspicious in your report, you can hire a credit repair company to help or you can remove the inaccurate items yourself.
Even though VA loans are more popular now than before, it is still different than a traditional loan.
Here are 7 VA loan tips that you need to consider if you’re thinking of buying a home through a VA loan.
1. You can get started without the Certificate of Eligibility (COE)
2. Your credit score still matters, but it’s not everything
3. Make sure you have enough saved
4. Shop for a VA lender and get pre-approved
5. Find a real estate agent that’s VA-savvy
6. Choose a property that’s VA-approved
7. Close the deal only when you’re ready to move in
VA home loans are an invaluable program for military women, men, and their families in their pursuit to home ownership. VA loans can be used regardless of whether you are a first-time homebuyer or not!
In general, they offer no down payment requirements, no mortgage insurance premiums, are within reach of those with 620+ credit scores, have lower interest rates, provide an easy refinancing option, allow buyers to have a higher debt to income ratio than normal, and will help negotiate with a lender to prevent foreclosure if the situation should arise.
Our best advice is to shop around and find the lender that works best for you!