If you are a Veteran we, first of all, want to say thank you so much for your service! Why a VA loan? Did you know as a Veteran you can purchase a new home with $0 money down? That’s right! The VA Home loan is specifically designed for eligible veterans and service members.
Did you know that there are millions of veterans eligible to explore their VA home loan benefits? Sadly only a very small percentage actually take advantage of this outstanding benefit.
In 1944 the government wanted to help veterans returning back home from war with a range of benefits that would help them, this bill was called the Servicemen’s Readjustment Act also called the GI Bill. One of the benefits of this bill was the VA home loan program. This benefit allows veterans and qualified military service members the opportunity to purchase a new home with $0 or little money down. Since then this bill has helped millions of veterans purchase a home.
Millions of Veterans as well as men and women within our military community share in a rich history of the dream of homeownership. From generation to generation one thing remains true, our Veterans embrace a passionate desire to own a piece of the American Dream they fought so hard for. Becoming a homeowner can provide a remarkable sense of comfort, financial security, and most importantly Pride! Not only is this one of the biggest financial investments you will ever make but it is also an emotional process. National VA Loans is dedicated to educating veterans and helping them through the home buying process.
What makes a VA loan different?
The VA Home loan is specifically designed for eligible veterans and service members. There are millions of veterans eligible to explore their VA home loan benefits sadly only a very small percentage actually take advantage of this outstanding benefit. Millions of Veterans as well as men and women within our military community share in a rich history of the dream of homeownership. From generation to generation one thing remains true, our Veterans embrace passionate desire to own a piece of the American Dream they fought so hard for. Becoming a homeowner can provide a remarkable sense of comfort, financial security, and most importantly pride! Not only is this one of the biggest financial investments you will ever make but it is also an emotional process. Only you can know when you are prepared and ready to take a piece of the American Dream.
Why a VA Loan?
So, the question remains, why a VA loan? What makes the VA home loan better than a conventional or FHA home loan. Below we will detail the reasons a VA home loan is best for all active military and Veterans, but, if you ask me or thousands of other Veterans, they will tell you the #1 reason to use your VA eligibility is ZERO money down! Why a VA loan over other loan options?$0 Money down (100% Financing)No Monthly Mortgage Insurance (saves you money) Historically Lower interest rates (Allows you to qualify for more home) Expanded Credit Qualifying Guidelines (You don’t have to be perfect)One of the most commonly used loans to purchase a home is an FHA loan. Based on national housing statistics the average loan amount in the United States is roughly $165,000. When using an FHA loan to buy your home you will be required to have a minimum of 3.5% available for the down payment. Based on these numbers that are over $5,775 out of your pocket! That means you have to save that money, then go pull it out of your bank and hand it over when you close. Not only will you have to put all that money down but your thanks for doing so is, a monthly mortgage insurance payment for a minimum of 5 years! This starts to take a little shine off the joys of home ownership, doesn’t it? If you think that’s bad, imagine if you did a Conventional loan. In most cases, you will put a minimum of 5% down and pay monthly mortgage insurance until your Loan to Value, which is the value of your property in comparison to the balance of your loan, is below 80%. There are many other benefits to the VA loan such as higher debt to income ratios, lower credit score qualifying, added benefits for Veterans with VA disability, VA loan closing costs guidelines and typically lower interest rates. Honestly, if you can buy your home and take zero dollars out of your pocket why wouldn’t you. If you are a Veteran and have the desire to become a homeowner do not wait! Take advantage of the benefits that you and millions of other Patriots have fought hard for. You’re a Veteran, you don’t set on the sidelines, you take action.
To put this into perspective, think about this; The national average rental cost for a 2-bedroom apartment in 2018 is $1,180. You are required to put first, last and security down on most leases which is roughly $3,500, just to move in! So, to rent the 2-bedroom apartment with a bunch of neighbours you don’t know but you can sure hear, paint on the walls that you can’t change, no yard, no garage, no tax advantages and no equity, you will pay almost $3,500 out of your pocket, from your bank just to climb 3 flights of stairs to get to your recliner every night. Crazy right?! Now let’s take that same payment of $1,180 and use your VA Benefits, you get to know and like your neighbors (except the weird guy at the end of the street) you have a yard that you can take pride in, a garage you can park your cars in (and hide from the weird guy down the street) and American Flag you can hang out front. Not to mention the equity you’re building and the tax advantages you qualify for as a homeowner.
VA Loan Eligibility Requirements
- 90 Days of service in wartime
- 181 Days of service in peacetime conditions
- 6 years of service in National Guard or Reserves
- Surviving spouses in certain situations
VA Loan Certificate of Eligibility
The COE or Certificate of Eligibility is your golden ticket to getting a VA home loan. You are not able to get a VA home loan without this certificate. The good news is it’s not to hard to find out if you are eligible. You can call (855) 956-4040 to speak with a licensed VA home loan officer or you can visit the benefits protocol here. https://www.ebenefits.va.gov/ebenefits/homepage
Benefits of being a Home Owner
The dream of homeownership is made possible by the men and women who have fought for our freedom. Owning a home is a rite of passage. It means settling down and planting roots to a place called home. It’s a milestone moment of a persons life when a person finally can own a home. That being said owning a home can be scary because of the added responsibilities and obligations that come with home ownership. When done properly that scary feeling fades away, purchasing and owning a home is a process that limits your financial risk, increases your investment power, and saves you tons of money over the long term—and it can even save you money immediately.
- Owning a home is an Investment
- You GAIN Equity
- Tax benefits- TAKE ADVANTAGE
- Stabalize your housing costs and take control
- Stop Moving
- Social Benefits
- Put your investment to work
- It’s YOUR home-change it
Path to Home Ownership
Most people think becoming a homeowner is hard. Honestly, shouldn’t it be a little hard? Look at the benefits of being a homeowner, I would expect to do a little work to be able to take advantage of all that. As a Veteran, you don’t have to worry about a down payment in most cases so what is holding you back? Credit? In most cases, it’s a credit that concerns most people that are thinking about buying a home. Credit is not only complicated but it’s also confusing especially if you don’t deal with it on a daily basis. What score do you need? How do you get your credit score better? How do you find out what your score is? All great questions and all very important. The VA does not have a specific credit score however, most Lenders require a minimum of 580. You can go towww.freecreditreport.com and get a 1-time credit report free per year so you can do some research yourself or feel free to contact us at 855-956-4040.