Understanding VA Loans
For today's home buyers, there are only a few mortgage options which allow for down-payments of five percent or less. When purchasing a home at the Lake of the Ozarks, a VA mortgage is an attractive option for anyone who qualifies. The VA loan remains one of the few mortgage options for borrowers who don’t have the money for a down payment. Available to millions of veterans and active military members, VA loans are somewhat easier to qualify for than conventional mortgages. Let's take a look at what a VA mortgage is and some of the benefits of VA financing for qualified buyers.
WHAT IS A VA LOAN?
The VA Loan is a mortgage loan issued by approved lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The program was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit. This historic benefit program has guaranteed more than 22 million VA loans to help veterans, active duty military members and their families purchase homes or refinance their mortgages.
BENEFITS OF VA FINANCING
Military homebuyers have access to one of the most unique and powerful loan programs ever created.
Some of the benefits of VA financing:
One of the biggest enticements of getting an VA loan is that having poor credit doesn't necessarily mean that you'll be disqualified. As with any lending option, there are still stipulations. Veterans Affairs does not require a minimum credit score for a VA loan, but lenders generally have their own internal requirements. Most lenders ask for a credit score of 620 or higher. Borrowers must show sufficient income to repay the loan and shouldn’t have excessive debt, but the guidelines are usually more flexible than they are for conventional loans. VA guidelines also allow veterans to use their home-loan benefits a year or two after bankruptcy or foreclosure. Another advantage of a VA loan is the assistance offered to struggling borrowers. If the borrower of a VA loan can’t make payments on the mortgage, the VA can negotiate with the lender on behalf of the borrower. VA’s financial counselors can help borrowers negotiate repayment plans, loan modifications and other alternatives to foreclosure.
YOUR TRUSTED MORTGAGE LENDER AT THE LAKE OF THE OZARKS
WHAT IS A VA LOAN?
The VA Loan is a mortgage loan issued by approved lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The program was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit. This historic benefit program has guaranteed more than 22 million VA loans to help veterans, active duty military members and their families purchase homes or refinance their mortgages.
BENEFITS OF VA FINANCING
Military homebuyers have access to one of the most unique and powerful loan programs ever created.
Some of the benefits of VA financing:
- 0% Down (for qualified borrowers). VA Loans are among the last 0% down home loans available on the market today.
- Since VA Loans are government backed, banks do not require you to buy Private Mortgage Insurance.
- The VA guaranty gives lenders a greater degree of safety and flexibility, which typically means a more competitive rate than non-VA loans.
- Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans, making them easier to obtain.
More Flexibility in Qualification!
One of the biggest enticements of getting an VA loan is that having poor credit doesn't necessarily mean that you'll be disqualified. As with any lending option, there are still stipulations. Veterans Affairs does not require a minimum credit score for a VA loan, but lenders generally have their own internal requirements. Most lenders ask for a credit score of 620 or higher. Borrowers must show sufficient income to repay the loan and shouldn’t have excessive debt, but the guidelines are usually more flexible than they are for conventional loans. VA guidelines also allow veterans to use their home-loan benefits a year or two after bankruptcy or foreclosure. Another advantage of a VA loan is the assistance offered to struggling borrowers. If the borrower of a VA loan can’t make payments on the mortgage, the VA can negotiate with the lender on behalf of the borrower. VA’s financial counselors can help borrowers negotiate repayment plans, loan modifications and other alternatives to foreclosure.YOUR TRUSTED MORTGAGE LENDER AT THE LAKE OF THE OZARKS
At MHQ - Mortgage HeadQuarters, we find VA Loans to be a great source of funding for our veteran and active duty military clients. We can share our knowledge and experience with VA loans, making it easier to compare to conventional financing. So, if you're in need of a mortgage for a new home or have any questions pertaining to VA mortgage lending, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have your best interest in mind. We can help you choose a mortgage program that's right for you and your specific needs!
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