What You Need to Know When Applying oroca Raton VA Home loans
For some time now, Veterans Affairs home loans have been in high demand. Also known as VA loans, they are available to active members of the military as well as military veterans. You can apply for Boca Raton VA home loans using private lenders such as class=”qowt-stl-Hyperlink”>NHL Lending. These home loans are guaranteed by the Department of Veterans Affairs and they do not require any mortgage insurance.
In fact, even if the borrower has a low credit score it really does not matter much as there is no minimum credit score prerequisite.
The VA home loan is the best option for heroes who have served and yet do not have enough money to make a down payment. This facility is available to millions of active military members as well as veterans.
The bare minimum requirements make VA home loans popular than conventional loans as they are much easier to qualify for.
It is important to note that the U.S Department of Veterans Affairs is not a direct lender. A financial lender such as NHL Lending releases the money.
Would you like to know if you are eligible for Boca Raton VA home loans? Continue reading.
Those who are eligible for a VA home loan include:
- National Guard members
In addition, their spouses are eligible as well if they die while on active duty or died due to a service-connected disability.
Members who are on active duty can expect to be eligible after 6 months of service. On the other hand, members of the National Guard and reservists have to wait for 6 years to apply. However, if a reservist is called to duty during that time, they will qualify for a VA home loan after 181 days.
However, during war periods, members of the National Guard, Reservists, and active-duty members qualify for a loan in roughly 3 months.
Advantages of a VA Loan
One of the biggest advantages of getting a VA home loan is that you do not need to make any down payment. In addition, you are not required to make monthly insurance premiums. Since you do not have to take time and start saving for your down payment, getting a VA home loan is one of the quickest ways to purchase a property.
Another advantage is that borrowers are allowed to access their home-loan benefits up to 24 months after they have gone through foreclosure and bankruptcy.
VA Home Loan Fees
Even though the cost of getting a VA home loan is cheaper compared to other types of home loans, you can expect to pay a one-time fee. The fee will vary based on the type of veteran who is borrowing as well as the amount of down payment made.
Let us take a closer look at this.
If a borrower who is a member of the armed forces is getting a VA loan for the first time and makes no down payment, they would be expected to pay a fee of 2.15% of the loan they are getting.
On the other hand, if the same borrower decides to make a down payment of 10% or even more then the fee is reduced to 1.25%.
Members of the National Guard and reservists pay 0.25% more than active-duty members do.
If a borrower is applying for a VA home loan for the second time and does not have a down payment, they pay 3.3% of the total loan amount. It is important to note that if the borrower is receiving disability compensation, they are not required to pay the fee. Use this class=”qowt-stl-Hyperlink”>home loan calculator to get a rough value of how much a Boca Raton VA home loans would cost you in fees.
Underwriting Requirements for VA Home Loans
Even though the class=”qowt-stl-Hyperlink”>Department of Veteran Affairs does not have a minimum requirement for a credit score, lenders usually do. Most lenders require that borrowers have a credit score of about 620. Sometimes the lender might agree to a lower credit score however, that goes hand in hand with a higher interest rate.
Another requirement that a lender will have is that the borrower show proof that they are capable of repaying their loan. They should also reveal the amount of debt they have. It should not be excessive. It might sound like the requirements are stringent, it still is much easier getting a VA home loan than it is getting a conventional one.
It is important to note that you can only use a VA home loan to finance the purchase of a primary residence. You cannot use a VA home loan to refinance investment and vacation homes. Despite there being no restrictions to the amount of money you can borrow using VA home loans, there is a limit to how much risk the VA can expose itself to.
To know more about our Boca Raton VA home loans? Get in touch with NHL Lending.