Every veteran should be a homeowner – VA loans are the best possible loan you can get! If you are a veteran and are not yet a homeowner, please keep reading. The VA has created the most beneficial mortgage loan on the market to help our veterans have easy access to affordable housing. The VA minimizes the barriers to homeownership in the following ways:
No down payment
Most people spend years saving for a down payment in order to buy a house. Almost every other loan on the market requires a down payment – VA loans do not. In fact, you don’t need to bring a single penny to closing if you negotiate for the seller or the lender to cover your closing costs. Instead of paying the first month’s rent and a security deposit at an apartment complex, you could spend $0 to buy your own home.
No mortgage insurance
Mortgage insurance is a fee (typically charged monthly) that you pay to a lender if you do not have a 20% down payment. This fee is charged to help reduce the lender’s risk since it is more risky for them to lend money with a lower down payment. The VA takes on this additional risk for veterans and does not require mortgage insurance. Other mortgages require both a down payment and mortgage insurance; a VA loan requires neither.
VA offers lower interest rates than conventional loans. Between lower rates and no mortgage insurance, a VA loan provides the lowest possible monthly payment and can save tens of thousands over the life of the loan. On a $300,000 mortgage, a VA loan would save you $285/month between interest and mortgage insurance savings. This saves you $102,600 over the life of the loan!
Lower credit requirements
VA loans have some of the lowest credit score requirements and are more accepting of derogatory debt, such as late payments or collections. Foreclosure or bankruptcy? No problem. The VA allows you to obtain a mortgage 2 years after a foreclosure has been finalized. You only need to wait 1 year after a chapter 13 bankruptcy and 2 years after a chapter 7 bankruptcy.
Higher debt to income ratio threshold
VA loans accept a higher debt to income ratio than conventional loans, meaning you can get approved for a higher loan amount with less income than conventional loans. This provides more purchase power, allowing you to buy your dream home.
The bottom line…
If you are a veteran, you have a better chance of becoming pre-approved to buy a house. When approved, you will get the best mortgage option out there. The most common barriers to buying a house are credit score and down payment; the VA removes these obstacles to make homeownership a reality.
At Give Financing, we are committed to serving those who have served us. That is why we will not only get you pre approved without any out of pocket costs but if you do not qualify we will help you increase your credit score to qualify. Give us a call or click to apply today!
At Give Financing, we believe it is our duty to help our customers obtain the best mortgage possible as well as doing our part to make the world a better place. At closing, we donate $500 to a charity of your choice! Here are some of our preferred charities:
St Jude: https://www.stjude.org
Give Back Homes: https://givebackhomes.com/
Homes For Our Troops: https://www.hfotusa.org/
Ready to take the first steps toward homeownership? Call or click!
Learn more at: https://givefinancing.com/