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VA loans are a great program for military veterans, especially in this current housing market. Our veterans are among our country’s greatest assets. As part of their service benefits, the government backs home loans created specifically for them. Take a look at four reasons we are thankful for them.
#1: Lower Interest Rates and No Down Payment
The VA loan programs include lower interest rates, and 80% of homebuyers can close on a loan with no down payment. Both of these can help buyers achieve homeownership.
#2: Lower Credit Score Requirements
Most mortgage programs require a “good” to “excellent” credit score at the minimum to qualify for a loan. The VA program looks for a 620, or “fair” score. This lower benchmark helps many potential home buyers qualify when they wouldn’t qualify for a conventional loan.
#3: Reduced Closing Costs
Closing costs are often significant when buying a home. For VA loans, the Veterans Administration puts limits on the closing costs paid by veterans. This reduces the overall cost of buying and closing on a home, reducing homeownership barriers for many veterans.
#4: Foreclosure and Bankruptcy Considerations
A recent foreclosure or bankruptcy can often prevent you from qualifying for a home loan. The VA loan allows you to qualify for the loan program in as little as two years after a foreclosure and as little as one year after bankruptcy.
Our U.S. military veterans served their country, and in return, the VA hopes to help them achieve homeownership without some of the requirements of conventional loans. To find out more about VA loans and to find out if you qualify, contact the team of experts at Midland Mortgage Corporation.