A Veterans Administration loan can help both active and retired military members make their dream of owning a home come true. However, you must meet certain qualifications to secure a VA loan. The Loan Specialists at Zeus Lending are here to help you fully understand how a VA loan can benefit you and how to qualify for it. We love serving those who’ve served!
First and foremost, VA loans do not require a down payment, which means the loan applicant can finance 100% of the property’s final purchase price. Many buyers consider this the biggest boon of a veteran personal home loan, as they do not have to spend time-saving money for a down payment, which means they can close on a home they like earlier. Traditional private mortgages usually require a down payment of 5%, and even FHA loans require a 3.5% down payment. Since the average person who applies for a VA loan typically has about $9,000 in total assets, not worrying about coming up with a down payment lessens stress levels.
Secondly, VA loans do not require the purchase of a mortgage insurance policy, as conventional and FHA loans do. If your down payment is less than 20% of the overall principal, private lenders will require mortgage insurance until you have built up 20% in equity. On the other hand, FHA loans require mortgage insurance no matter what. VA loans without mortgage insurance save veterans about $40 billion every year.
VA loans are usually easier to secure than private or FHA loans. So if you’re a veteran with a not-so-great credit score, don’t worry; a loan you can afford may still be available. Typically, the minimum credit score to receive a VA loan is 580, and lenders allow borrowers to have higher debt-to-income ratios. Also, suppose a veteran has suffered a serious financial difficulty, such as foreclosure or Chapter 13 bankruptcy. In that case, they can usually secure a VA loan sooner than they would have qualified for an FHA or private loan.
The benefits of a VA loan keep coming. They often have lower interest rates and no prepayment penalties, and you won’t pay as much in closing costs and fees. Best of all, VA loans aren’t a one-and-done deal. If you buy your first home using a VA loan and later need to move, you can use a VA loan to buy your next home, the home after that, and so on as long as you continue to qualify.
The VA requires that certain conditions be met regarding your service time before being eligible for a VA loan. You must have served for one of the following lengths of time:
Surviving spouses of veterans who gave their lives in the line of duty or due to a service-connected disability are also eligible to apply, but they must meet additional requirements.
If you’re a veteran in Greater Houston looking to purchase the home you want and deserve, Zeus Lending can help you, no matter your financial situation or credit score. If you have any questions about VA loans, we encourage you to contact one of our Loan Specialists. We’re here to make the loan process as stress-free and straightforward as possible for you! Our Super-Simple Application™ takes less than 3 minutes to complete, so fill it out today, and one of our Loan Specialists will reach out to you as soon as possible. We look forward to serving those who have served our great country!
Our Loan Specialists at ZeusLending.com will help you evaluate all your choices. We’re experts at finding you the best options and values.
The Super-Simple Application™ takes fewer than 3 minutes to complete. A knowledgeable Loan Specialist will contact you right away, help you with any questions, and assist you in making the best choice. There’s no obligation on your part. The only obligation is our obligation to ensure you are 100% satisfied with our service