Are you worried about getting approved for a mortgage loan? Credit score, income limitations and other financial problems are some of the hurdles that you may face when applying for a loan. However, there’s a better option available to veterans or active military personnel in the form of VA loans. VA loans have been exclusively designed to help veterans and their families save money on their home mortgages.
One of the biggest advantages of a VA loan is that there’s no down payment requirement. That means zero down on your mortgage! Less stringent underwriting and lower closing costs are some of the other advantages of a VA home loan. In addition, VA loan rates in Texas are much lower than FHA mortgage rates.
Let’s take a closer look at some of the advantages associated with VA loans.
What Makes the VA Loan a Better Option?
Borrowers can choose from fixed, graduated or adjustable rate mortgage programs. Whether you are planning to buy a condo or build a home or need to make some home improvements, VA loans are here to help.
Veterans are also eligible for 100% down payment assistance for the purchase of their primary residence. There is no private mortgage insurance (PMI) or reserves required with a VA loan. This loan program even allows borrowers to purchase a home two years after a bankruptcy and three years after a foreclosure.
The loan program also comes with default assistance to avoid foreclosure. VA loan programs offer financial counseling to help veterans avoid losing their homes when they face financial difficulties.
Who is eligible?
According to Veteran Affairs (VA), more than 27 million veterans are eligible for VA loans. The applicant must be an eligible veteran with an available home loan entitlement. Veterans must meet one of the following criteria:
- 181 days of active duty service during peacetime or
- 91 days of active duty service during wartime or
- At least 6 years in the Reserves or National Guard
The applicant should have a minimum credit score to be eligible for a VA mortgage loan. The veteran and his/her spouse must have sufficient income to cover housing expenses and other obligations. Also, the property should be occupied by the veteran within a reasonable period of time after closing on the loan.