Every person deserves to be able to own a home at some point in their life, provided they've worked toward it, and that's especially true for our nation's veterans. Veteran loans, known in the banking world as VA loans, are a $0 down mortgage option for veterans, giving every veteran and select spouses a chance to own a home without the need for a significant amount saved for a down payment nor the need for an excellent credit score. Putting our nation's heroes into homes and off the streets, VA loans have helped more than 24 Million veterans and their families. Veterans can acquire a loan from private lenders, mortgage companies, and banks. If you are a veteran or spouse interested in owning or refinancing a home, read on to learn more.
Veteran loans come with a number of advantages over traditional mortgages, but they do have some restrictions. As mentioned, there is no down payment required. However, veterans can only get a loan amount of up to $484,350 without a down payment, so if you live in a high-cost county, you may need to make some kind of down payment in order to buy a home that exceeds that amount. Because VA loans are backed by the U.S. Department of Veterans Affairs, they do not require you to purchase any Private Mortgage Insurance. These government-backed loans make it easier to qualify since the bank itself assumes less risk. It also means that interest rates are more competitive, even if you don't have the best credit.
As with most loans, rates are determined by a number of factors. Currently, average rates for a 15-year fixed VA loan are at 3.250% and a 3.701% APR, while a 30-year fixed VA loan is a 3.250% and a 3.498% APR. But besides the duration of the loan, your credit score, debt-to-income ratio and current market conditions will all affect your interest rate.
As for eligibility, you will need to meet one of four major qualifications in order to acquire a VA loan. As a veteran, you must have served at least 90 consecutive days of service during wartime or at least 181 days of active service during peacetime. As a veteran of the National Guard or Reserves, you must have more than six years of service. A military spouse will usually only qualify if a service member has died in the line of duty or become disabled as a result of their service. However, if you don't meet these conditions, there may be other factors that make you eligible. But before that can be determined, you'll need to find a suitable lender.
Veterans United is one of the most widely recognized mortgage companies that provides VA loans to countless veterans across the country. Unlike many lenders that try to entice borrowers with fantastically low interest rates, Veterans United will give you a more realistic quote with no hidden fees. Aiming to help veterans in every way, Veterans United will help determine what you can afford and guide you through the VA loan process every step of the way. Representatives are available 24 hours a day and seven days a week. They will even help you find a qualified real estate agent that is knowledgeable about VA Benefit Program.
Whether you are looking to get an initial home loan or refinance your home with the benefits of a VA loan, you'll have plenty of other options. Banks like USAA and Wells Fargo offer both VA home loans and VA refinance advantages. Best of all, with USAA Bank, appraisal, title and VA funding fees are all covered. USAA Banks also offer advantages such as lower monthly payments and no origination fees, regardless of whether you are acquiring a home loan or refinance loan. Another option for refinancing or getting a no down payment VA loan is Quicken Loans. You can apply easily online and chat with a home loan expert by phone or online. Explore these options and more, today.