|January 20, 2016||No Comments|
When it comes to talk about getting a home loan, typically the question is, FHA or conventional. Depending on the situation, rural, commercial or jumbo loans come up, but oftentimes people either don’t realize or forget to consider the option of VA loans. Of course, among other requirements, they would require that you be a veteran, but there are some really great benefits if you are eligible. I’ve personally closed a number of VA loans and have found them to be easy and smooth transactions for the most part, definitely easier and more favorable than some of the other types of loans out there and always worth considering when eligible.
One of the biggest benefits that VA loans are known for is that they offer the option of $0 (yes, zero dollars) as a down payment, without PMI (which stands for private mortgage insurance, a monthly cost that can add substantially to your monthly note, which does not go to increasing your equity in the home either). Also, because the VA guarantees a portion of the loan, lenders can typically offer more favorable terms and better interest rates compared to more traditional types of loans.
To be eligible, among some other requirements, you must have been a veteran and have served for either 90 days or longer in wartime, or for 181 days or longer in peace time. Also, there are some income requirements and lenders typically want to see a credit score of 620, although I have closed on a number of homes where my buyers had substantially lower scores than that. Also, the home itself must be a single family home, not a multi-family, but condos, townhomes, modular homes and new construction may be eligible as well.
If you find yourself eligible for a VA loan or think you may be, remember to ask you lender about this type of loan as they can really have some great terms. This frequently doesn’t happen as lender like doing these loans when they are familiar with them, but if they are unfamiliar or if you feel like they are steering you away from doing one, feel free to call me and perhaps I can put you in touch with a lender who can help. They are really a great, overlooked options when it comes to buying real estate.