VA First Time Home Buyer Loans
VA First Time Buyers
First Time Buyer Home Loan Programs for Veterans.
Buying a home for the first time is an exciting and rewarding experience. You may have spent years saving money and countless hours searching out the right loan program. With all the mortgages currently available, you probably wonder which program is right for you. Well, if you are a veteran of the U.S. military, your search stops right here.
The United States Department of Veterans Affairs offers first-time homebuyers’ loan programs with easy qualification requirements and affordable up-front expenses. As a veteran, you need to meet only one of the following three requirements to apply for a VA loan:
- You must have served 181 consecutive days on active duty.
- You must have served 90 days during wartime on active duty.
- You must have served six years in the National Guard or Reserves.Keep in mind that you will need a certificate of eligibility from the Veterans Administration to confirm you are qualified for the program. It is important to note that the VA does not directly lend money to you. Instead, the VA provides insurance to approved lenders who then handle the loan process and provide funds to close.
Important VA Loan Benefits
Due to the housing crash of 2008, banks tightened lending restrictions in order to protect themselves from offering loans to borrowers who are at high risk of default. On top of that, banks eliminated no money down programs that sealed the fate of many people who were low to middle income borrowers who could not afford the up-front costs. Conventional loans today require down payments up to 20 percent of the sale price. Additional closing costs and other fees add to the up-front expense when buying a new home. However, VA loans provide guaranteed loans with little closing costs and no down payment requirements. This is a significant advantage over other loan types. Here are some other important features of VA loans:
- VA loans do not require that you pay monthly mortgage insurance premiums.
- The loan program keeps your closing costs limited. Mortgage lenders cannot charge veterans loan processing fees and underwriting fees.
- Low interest rates keep your monthly mortgage payment affordable.
- Again, VA loans do not have a down payment requirement.
- If you are faced with a limited credit history, VA loans give you an opportunity to obtain financing through relaxed credit requirements. Therefore, you establish a strong credit history by making on-time mortgage payments.
- The Veterans Administration offers you assistance if a financial hardship causes you to miss mortgage payments.
The benefits of applying for a VA loan are pretty obvious. Veterans who served their country honorably have an opportunity to buy a home using an affordable loan program. Apply today and discover how much money you can save through the VA Home Loan Program.
VA Mortgage Calculator
Use the calculator below to see how much your monthly payment might be. Input the price of the home you want to buy, how much (if anything) you want to put down, and the number of years you want to pay your loan back over (most choose a 15 year or 30 year loan). Keep in mind, this calculator just calculates the payment and VA funding fee based on the numbers you enter. To get an official quote and find out what your monthly payment will be, you must apply.
VA Mortgage Calculator
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VA Loan Borrowing Limits
According to the VA, “there are no limits on the amount of money veterans can borrow to buy a home.” However, approved VA lenders generally do not allow you to borrow more than $417,000, which is the conforming loan amount set by Fannie Mae and Freddie Mac. Learn how much you can borrow by speaking with one of the mortgage representatives today.
VA Loan Interest Rates
The VA does not set the interest rate on your home mortgage. Approved lenders who offer VA loans set the rate and compete for your business by offering various rate quotes. You might find it difficult to choose which lender and what interest rate offers you the biggest savings. Therefore, you need an experienced mortgage representative to help you find the right program with the lowest interest rate. Apply today and unlock the power of a VA loan.