Does celebrating the holidays in your own home with your traditions sounds like a dream? It doesn’t have to be. You’ve spent years moving around from base to base, living in government quarters. It’s time to use your VA benefits to settle into your own place. American Veteran Properties will show you how those benefits will make it easier to purchase a home and save you a lot of money so you can deck your own halls and enjoy your family.
We’ve found that service members frequently don’t understand the benefits of a VA loan. We’ve broken down the benefits so you can see just what a VA loan can do for you.
No Down Payment
Perhaps the greatest advantage of a VA Home Loan is the fact that there is no required down payment for qualifying service members and veterans. Compare that to conventional and FHA loans where buyers are typically required to pay 3.5-5% of the home price for their down payment.
What exactly does that savings look like? Well, on a $200,000 mortgage, you’d be required to put down up to $10,000 in a down payment. Forget saving up for years for your down payment. Find the house you like and move straight in!
No Mortgage Insurance
There is no mortgage insurance with a VA loan! FHA and conventional loans require PMI (or mortgage insurance). So, unless you can put down 20% of loan as a down payment, you will be required to pay for private mortgage insurance until you have reached that 20%.
Easier Credit Requirements
You’ve fought hard for your country; you might as well take advantage of the benefits! A VA loan allows for reduced credit scores requirements. FHA and conventional loans have a high credit score threshold, but with a VA loan you can qualify with a credit score around 620. Give us a call and we can walk you through all the credit score details.
Less Restrictive Debt-To-Income Ratio (DTI) Requirements
Debt-to-income ratio is determined by comparing how much debt you have (car payments, credit card debt, student loans, etc.) to your monthly income. Lenders typically don’t want to fund a loan where a buyer’s DTI is over 49%. However, VA lenders will frequently allow qualified buyers to obtain a loan with an elevated DTI ratio. VA lenders will take into account high credit scores, cash savings, and higher income levels, allowing DTI ratios of over 55%.
Closing Cost Limits
You’ve found a house you like in your budget. You’re all set to buy. Then your agent reminds you about closing costs. Can you afford them? What are they anyway? Closing costs include all the costs required to produce the loan. Luckily, for service members, the VA limits what fees and costs veterans are required to pay at the time of closing.
A home of your own isn’t out of reach. If you are ready to settle into a house in the Savannah or Hinesville areas, near Fort Stewart, Fort Benning, or Hunter Army Airfield, American Veteran Properties can help. We’ll assist you in finding a home and walk you through the process of a VA loan. You’ll be cozying up in front of your own fire in no time!