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FINANCE

Why Consider A VA Loan For Your Next Home Purchase

Looking for the right mortgage loan that can help you realize your dream home purchase can be tricky. However, if you’re a service member or veteran, then you should consider taking up a VA Loan Grand Prairie.

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VA loans are particular home loans offered to veterans and active service members who want to buy a house. Take note that the Veterans Affairs Department only guarantees the loan. You’ll still need to find a suitable mortgage lender who will approve your VA Loan Grand Prairie application.

But why choose a VA Loan instead of other mortgage loan programs? 

No down payment required

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This is one of the best reasons why those who qualify for a VA loan choose this mortgage. Veterans or active service members can take advantage of the no down payment rate for VA loans. This means you can buy a house with 100{6e3ff21ac527cf19e868f6e1383e3fdd712314b18283ec0bcd624937a189e376} financing. If you choose other mortgage programs, you’ll need at least 3.5{6e3ff21ac527cf19e868f6e1383e3fdd712314b18283ec0bcd624937a189e376} down payment to qualify. In VA loans, it’s easier to qualify and buy a new house without having to put down any down payment.

Private Mortgage Insurance is not required

VA loans don’t need service members or veterans to pay for mortgage insurance. Other home loans require borrowers to pay PMI, especially if they spent less than 20{6e3ff21ac527cf19e868f6e1383e3fdd712314b18283ec0bcd624937a189e376} downpayment. With a VA loan, there are no private mortgage insurance fees to pay, saving you more money in the process.

Good Read: 5 Types of Private Mortgage Insurance – PMI

No Minimum Credit Score

With other loans, you need to have the minimum credit score to get a mortgage. For VA Loans, instead of a minimum credit score requirement, your mortgage lender will review your profile. Those with lower credit scores are usually the ones who qualify for a VA loan. For those with higher credit scores, they opt for conventional loans instead.

No Loan Maximum

In general, there is no loan maximum for VA loans. However, loan limits depend on the amount of liability you can take. The loan limit varies depending on the location of the house you wish to buy and the county. It is also dependent on the highest-value loan the Veterans Affairs Department can guarantee. Starting in 2020, new VA loan limits will be applied.

Good Read: New Law Allows You to Get a Bigger VA Home Loan Without a Down Payment

No Maximum Debt-To-Income Ratio

Another reason to choose a VA loan is because of its no maximum Debt-To-Income ratio. If your DTI ratio is 41{6e3ff21ac527cf19e868f6e1383e3fdd712314b18283ec0bcd624937a189e376} and above, your lender will ask for additional requirements. This is to ensure you can pay for the loan by compensating for the high DTI ratio.

Foreclosure Advantage

The staffs of the Veterans Affairs Department are very dedicated when it comes to assisting veterans who failed to commit to their loan responsibilities. This means they will try to help you fight off foreclosure to the best of their abilities.

These are the reasons why it pays to consider a VA Loan Grand Prairie when looking for the right mortgage. However, not just because you qualify for the loan doesn’t mean you can go ahead and apply for one without thinking about it thoroughly. For example,  just because you can get a VA loan for no down payment, you should already limit yourself to this mortgage. Consider other options as well.

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