VA Home Loan Benefits & VA Home Loan Eligibility – What You Need to Know
VA home loan benefits are numerous. With affordable interest rates and no down payment required, the program opens up countless opportunities for Veterans and their families to purchase a home. It’s important to do your research about any mortgage option you’re considering. It’s easy to see why so many Veterans choose this path to homeownership. Understanding how VA home loan eligibility works can help you make a more informed decision. Keep reading to learn more about the benefits of VA loans and whether you are eligible for one.
VA Home Loan Benefits
After spending time serving their country, Veterans are eligible for low-interest mortgage rates. As Veterans, you are not subject to the same 20 percent down payment that most people are expected to pay for a home loan. Veterans are also not required to pay private mortgage insurance, or PMI, for down payments less than 20 percent. This leads to huge savings and virtually no upfront costs for Veteran to secure a VA home loan.
There is no limit to how many times you can use a VA loan, either. This means buyers who want to upgrade to a new property can do so as frequently as they would like. The only limitation? Your home needs to be your primary residence. While you can’t use VA home loans to buy that vacation house you’ve always dreamed of, the other opportunities are endless!
VA Home Loan Eligibility
In order to qualify for a VA home loan, Veterans must have served at least 90 days of active duty during wartime. During times of peace, 181 days are needed. Members of the National Guard and Reserves are also eligible for VA loans. They need to spend at least six years in the service to qualify. If you have lost a loved one in the line of duty or because of a service-connected disability, you are also likely eligible.
There is no minimum credit score required by the Department of Veterans Affairs. Individual private-sector lenders, however, may set their own guidelines. The VA itself does not offer these loans. They only work to guarantee these loans should they fall into foreclosure. Private-sector lenders are the ones to actually supply financing for Veterans. Credit scores as low as 620 are generally considered acceptable for VA home loans.
Buying a home can be exciting. It’s worth doing your research to understand all of the potential pros and cons of a VA home loan. If you are new to the home buying process, you will likely have many questions about the program. VA home loan benefits are obvious. We encourage all Veterans to understand what they can afford and what option is best for their finances.
So Cal VA Homes is dedicated to educating Veterans on their VA home loan benefits. Our site is a treasure trove of helpful resources. Our breakthrough programs can help you find the home of your dreams. Get started now by calling 949-268-7742 or check out our helpful tools to guide your house hunting process.