The VA Mortgage is still a Good Deal
It may sound like a cliché, but today is a great time for veterans and other eligible borrowers to buy a home with a VA mortgage. All signs are pointing to steady growth for the overall real estate market. This means that home prices will continue to inch up while supply of available homes could dry up in certain areas. Here are some of the advantages of a VA loan that are still relevant in the current economy.
Low Credit Scores are Not Automatic Rejection
Most conventional loans will not look at an application with credit scores below 700. Even FHA is trying to steer away from potential borrowers that have a score below 620 (although exceptions are made). However, this is not the case with the VA home loan. The guidelines from the Veterans Administration focus heavily on the most recent 12 month credit history. The three big items that can prevent a loan approval are tax liens, bankruptcy and large collections.
No Money Down
New car dealers like to advertise their “no money down” deals. However, the fine print often explains that these deals only apply to a very select group of people. The VA mortgage is the exact opposite. A qualifying veteran, member of the reserves or disabled soldier can purchase a home without the need for a down payment. This can save most borrowers thousands of dollars.
Benefits Extend Beyond the Veteran
Recent rule changes have made it possible for other people to qualify for a VA loan. This can include a surviving spouse or even the children of veterans. Special rules do apply and it is best to speak to a lender experienced with VA loans. But the fact remains that more people are now eligible for the mortgage than at any other time in history.
Rates are still at an all-time low. However, most analysts are predicting that as the general real estate market continues to improve the interest rates will rise with it. Now is a great time to apply for a loan and lock in a great rate and take advantage of one of the best mortgages currently available.
- Important Disclosure
The VA mortgage program is available to eligible Veterans only.