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Everything You Need to Know About VA Loans
If you've spent even a tiny amount of time shopping around for a mortgage, then you know it's not exactly a picnic. Our REALTORS® understand that securing a home loan is easily the least fun part of the home buying process, but it's an unavoidable one.
That said, many homebuyers have a loan option they may not have considered: VA Loans. For those who qualify, a VA loan is an amazing resource, arguably much better than a conventional mortgage. So if you're looking at Mansfield homes for sale, be sure to carefully consider all your loan options.
What is a VA Loan?
VA Loans are backed by the U.S. Department of Veterans Affairs and are designed to provide a simple and affordable route to homeownership for military, veterans and their families. Since VA Loans were first offered under the Servicemen's Readjustment Act in 1944, they have helped countless current and former service members finance their homes.
One of the chief benefits of a VA loan is that it comes with a very competitive interest rate compared to a conventional loan. It also does not require the purchase of additional private mortgage insurance. There are also no specific loan limits, although in most U.S. Counties, the VA has set the maximum VA mortgage it will fully guarantee at $484,350 for 2019. In some areas, it is much higher.
Who Qualifies for a VA Loan?
VA loans are intended for the purchase of a primary residence by active service members, veterans, and in some cases, surviving family members. Length of service or service commitment, duty status, and character of service are all considerations. Generally speaking, you are likely to be eligible if you meet any of the following qualifications:
- 90 days of active duty service during wartime
- 181 days of active duty service during peacetime
- Six years of service in the Reserves or National Guard
- Your spouse was killed in the line of duty (and you have not remarried)
There are financial qualifications as well, and your credit score is one of many factors that will be considered. The VA does not have specific credit requirements, but your lender might. Factors like credit are usually not weighed as heavily when applying for a VA loan as with other types of home loans, but they still matter, so it's worth looking at your credit score and making improvements where you can before you apply.
How Do I Apply?
Once your certain you've met the eligibility requirements for military service members, veterans, and military spouses, find a lender that participates in the VA home loan program. There are many online resources for finding a lender, or you can ask your REALTOR®.
You will also need to get a Certificate of Eligibility from the VA to prove you are eligible for a VA loan. Your lender can also request one on your behalf. Once you've obtained the Certificate of Eligibility, the application process works much the same as a conventional loan. Your VA lender will work with you to complete the necessary steps.
One of the best ways to secure a VA loan is to have a great REALTOR® in your corner. Contact us today to learn more about how our team can help answer all your home loan questions, and get you on the road toward homeownership.