Are you a veteran looking for a home loan? If so, you may be interested in learning about VA loans. VA loans are an excellent option for veterans, as they offer many benefits that other types of home loans do not. This blog post will discuss some of the unbeatable advantages of military home loans. So if you are considering purchasing a home soon, be sure to read on.
They Don’t Need Private Mortgage Insurance (PMI)
One of the best things about VA loans is that they do not require private mortgage insurance (PMI). PMI is a type of insurance that homebuyers must purchase if they are not putting down at least 20% of the home’s purchase price. This insurance protects the lender in case the borrower defaults on their loan. While PMI is required for most home loans, veterans are exempt from this requirement with VA loans. This can save you a significant amount of money over the life of your loan.
They Don’t Require Down Payment
Another great benefit of VA loans is that they do not require a down payment. Unlike most other home loans, which generally require a minimum down payment of at least five percent. This can be a considerable advantage for veterans who may not have a lot of money saved up for a down payment. VA loans also have more flexible credit requirements than other types of loans.
They Offer Forgiving DTI Ratios
One of the unique benefits of VA loans is that they offer forgiving debt-to-income (DTI) ratios. DTI ratios are a way of measuring how much debt you have about your income. For most home loans, lenders want to see a DTI ratio of no more than 43%. However, with VA loans, lenders are typically more forgiving. So if your DTI ratio is a little higher than 43%, you may still be able to qualify for a VA loan.
They Help Curb Closing Costs
Another great benefit of VA loans is that they can help to curb closing costs. Closing costs are the fees and expenses associated with getting a home loan. These costs can add up, and they are often one of the biggest deterrents for people looking to buy a home. With VA loans, the seller is typically responsible for paying a portion of the buyer’s closing costs.
As you can see, there are many benefits to using a VA loan. If you’re eligible for a VA loan, it’s worth considering. Contact us today to learn more about how a VA loan could work for you.…
It is essential that you stay at your job during the entire period of mortgage processing. Quitting or getting yourself fired can result in you getting your mortgage application rejected. This also applies to loss of any other source of income that you may have. To ensure that everything goes smoothly, make sure that the income information that you provide when applying stays the same until the entire process is completed.