The U.S. Department of Veterans Affairs has helped countless veterans finance their home ownership goals. While you have the choice of a conventional loan offered by other mortgage lenders, there are some significant benefits to VA loans. Here are some of the most important advantages to consider:
The most famous benefit of VA loans is the lack of down payments. Homebuyers taking out a conventional loan typically need to pay around 3% of the home's purchase price up front as part of their loan terms. Even a small percentage can mean tens of thousands of dollars out of pocket. A VA loan will help you save this money instead of potentially draining your hard-earned savings.
Private mortgage insurance is required by lenders to protect them against the chance of you defaulting on your loan. Not only do these insurance policies have hefty upfront charges, the ongoing annual cost can last the entire life of your loan. Luckily, with VA loans, there is no requirement for private mortgage insurance, saving you money and time.
Mortgage lenders conduct a careful analysis of your financial profile when you apply for a loan. For most lenders, credit score requirements can be especially strict. Even if you qualify for a loan, a lower credit score might mean higher interest rates or private mortgage insurance premiums. VA loans don't have a credit score requirement, so no matter what state your credit is in, you can still be approved for a loan.
The same goes for debt-to income ratios. While VA lenders still consider DTI ratios in the approval process, the requirements are much more flexible and forgiving. Even with a high debt-to-income ratio, you can be approved for a VA home loan with other financial factors like credit score working in your favor.
These are only a few of the major benefits offered by VA home loans. Remember these factors if you're deciding between a VA or conventional loan so you can make the best decision for your situation.
An enthusiastic polo player, aviatrix and fourth generation member of one of the oldest winery families in the Napa Valley, Roberta has lived in the Bay Area her entire life. She has over thirty years of experience in buying, selling and managing real estate in the residential, investment and commercial markets. Not content to just “get the job done”, she wants to exceed your expectations. Roberta believes in service with commitment. Utilizing the kind of knowledge that is obtained only through extensive life experience and an in-depth understanding of the area and local market, she works with you to provide maximum results. During her accomplished career, Roberta has refined important skills in communication, negotiation, attention to detail and sound business practices, all of which are vital to the success of her clients today. Please call Roberta directly at 707.339.0233 to discuss your real estate needs.