VA Home Loans
VA Home Loan BenefitsVA Loan Elegibility
No Down Payment Required
The VA home loan remains one of the only lending programs on the market that offers a zero down payment* mortgage. Most lending programs require at least some form of down payment, with popular amounts ranging from 3.5% to 20%* For example, a $200,000 home could mean coming up with a down payment ranging from $7,000 up to $40,000! Borrowers using the VA loan can purchase immediately with no money down, avoiding years of saving up while paying rent to someone else.
No Monthly Mortgage Insurance
VA loans do not require mortgage insurance, even when the home buyer is putting no money down. As a result, the Veteran not only saves cash upfront but can also save thousands over the lifetime of the loan and give the buyer more purchasing power when shopping for a home.
Flexible Underwriting Guidelines
Qualifying credit factors such as FICO Credit Score, collections, debts and judgments are all considered with common sense underwriting reviews. Not every credit report is indicative of a Veterans true walk in life. Reanue Home Team finds a way to make every Veteran a homeowner. Its just common sense. VA loans also allow for a higher debt-to-income ratio than other types of mortgages.
*Other conditions may apply
VA Home Loan BenefitsVA Loan Rates %
Because the federal government backs VA home loans, lenders have the luxury of charging competitively low interest rates. Eligible veterans and service members find that rates are generally lower with a VA home loan than a conventional mortgage.
The Department of Veterans Affairs (VA) doesn’t set interest rates. Your lender determines the rate on your VA loan based on your unique financial situation.
Because of the risk involved in issuing a loan, a good credit score almost always means a lower rate. However, even if your credit report isn’t in perfect shape, you may still have an easier time qualifying for a low rate due to the VA Guaranty.
VA Home Loan BenefitsVA Loan Rates %
VA Home Loan BenefitsWhat Can I Afford?
The main qualification that determines the home price your can purchase is your income and your monthly debt.
The Department of Veterans affairs has determined that for the majority of veterans, 41% of your gross monthly income (if married, your combined family income) for your house payment and revolving debt is a comfortable and affordable debt to income ratio.
The affordability ratio should not be exceeded but the amount of VA loan you can qualify for is directly impacted by the current mortgage rate.
↓ Lower interest rates allow you to buy a higher priced home.
↑ Higher mortgage rates decrease the VA loan amount you can borrow.
VA loan rates have been at historic lows over the last few years, so this is an excellent time to buy a home.
VA Loans Allows Veterans to Afford Higher Priced Homes
An advantage of a VA loan is that eligible Veterans like you can purchase a higher priced home than non VA homebuyers using conventional or FHA home loans due to higher debt to income ratios and no monthly mortgage insurance, even with a VA zero/no down payment, 100% home loan.
VA Home Loan BenefitsFirst Time Home Buyers
Purchasing a first home is an exciting milestone in any person’s life. For some, the process may also seem very intimidating. That’s why our representatives are available 24/7 to help guide homebuyers and answer any questions they may have. Please don’t hesitate to give us a call toll-free at 619-598-9344 or start your quote online.
Advantages of a VA Loan:
No Down Payment Necessary.
Homebuyers will usually need at least a 5 percent down payment for conventional loans or a 3.5 percent down payment for FHA financing. On a $200,000 loan, that’s $10,000 for conventional borrowers and $7,000 for FHA. For many first-time homebuyers, coming up with that kind of cash up can be challenging. Being able to purchase with $0 down means VA borrowers don’t have to spend years saving to scrape together a big down payment.
Less Stringent Qualifications.
Many first-time homebuyers might not yet have a strong credit history, which can make it more difficult to get approval for a mortgage or qualify for an affordable interest rate. Since the VA Loan is government-backed, VA Loans are easier to qualify for at competitive rates.
Lower Monthly Payments.
Since VA Loans don’t require the added monthly expense of private mortgage insurance (PMI), they tend to leave more money in your pocket each month. In addition, the competitive VA Loan rates can save a typical buyer thousands over the lifespan of the loan.