Hope for Veterans Who Dream of Owning Their Own Home VA Home Loans
Coming back from war after serving your country is more difficult than many realise. The impact of serving in the military is often significant and while most veterans are proud of their service, many struggle to adapt to the realities of leaving that life behind. With more than 1.5 million veterans in the state of Texas alone, the challenge is growing. Sadly with the emotional and psychological challenges, there often come financial challenges too, which can make owning their own home an impossibility for many veterans. Few realise, though, that there are systems in place to help veterans not only to adapt to leaving the military, but also open the door to home ownership.
The specialist Veterans Association (VA) home loan program, which is backed by government, is designed specifically to help vets access funding for home ownership. At present more than 22 million veterans have been able to secure home ownership through VA home loan lenders and the VA guaranteed more than 707,107 home loans in 2016 alone. In 2015, there were more than 134,000 first time home owners and more than 187,000 previous home buyers assisted by VA home loan lenders. VA home loans can also be used for refinancing.
The benefits of VA loan vs conventional loans is significant. Since the loan program is backed by government and government assumes all of the risk for the mortgage candidate, VA loan recipients do not need to put any money down o access their loan and they also do not need to invest in personal mortgage insurance (PMI). PMI is usually required if buyers do not put down a deposit of at east 20% of the value of the home. VA mortgage rates are also much lower than conventional mortgages, with recent studies showing they can be as low as 50 basis points below a conventional rate.
VA home loan eligibility is simple: you need to have served for at least 90 days during war time or 181 days during times of peace. Those in the National Guard or the Reserves need six years of service before they qualify. A spouse whose family member was killed in action may also qualify. Most VA loan lenders offer a simple application process to see if you qualify. Although this is a government-backed scheme, your credit score can impact on your eligibility and also on the interest rate you are offered. Interest rates are usually determined by your credit score, the loan duration, your debt-to-income ratio and the current market conditions. Accessing VA home loans is usually easier even with a poor credit score. VA home loan lenders can be a good choice to help you buy your first home, invest in a second property or refinance your existing residence.