There are a variety of ways you can finance the purchase of a home. Each type of mortgage loan offers a unique set of benefits and drawbacks. In some cases, a mortgage type will have an extremely specific set of requirements for eligibility. One such mortgage loan is the veterans home loan.
Commonly referred to as VA loans, these mortgages are only available to veterans or surviving spouses of veterans — provided they do not remarry. The purpose of these loans is to assist veterans in the ability to purchase a home with less money down. They also have easier stipulations on credit scores and allow you to qualify for loan amounts larger than traditional or conforming loans.
If you are eligible for a VA loan, you have a great opportunity at hand. However, you might not be certain when the time is right for you to take advantage of the use of your VA loan. If you are contemplating the use of this loan, reach out to our team at Patriot Home Mortgage to learn more about your options.
Check out the following signs that it might be the right season in your life to utilize your VA loan.
You Are In The Market For A Home
First and foremost, if you are in the market for a home and a VA loan is an option, it is definitely worth exploring. Even if you discover a different mortgage type will offer you a better rate, it doesn’t hurt to look into what your VA loan could get you.
The first step is to reach out to a mortgage company who can walk you through available financing options. Request information on the utilization of your VA loan and find out what kind of benefits you might receive from choosing this mortgage type. There are stipulations on using your VA loan, such as whether or not the property you are interested in is eligible, so be sure to ask plenty of questions.
Just because a VA loan is available for the home you are interested in purchasing doesn’t mean it is the ideal choice. Make sure you take the time to explore all your options before proceeding.
You Want To Avoid Paying PMI
There are a lot of benefits to utilizing a VA loan. One major benefit is the fact that you will not need to pay PMI (private mortgage insurance). PMI can be extremely costly and when you tack it onto your monthly mortgage rates, it can cause a house you thought was within your budget to be out of reach.
If paying PMI has been holding you back, talk to your lender about a VA loan. Avoiding this massive cost can not only save you up front, but could wind up saving you thousands throughout the life of your mortgage.
You Don’t Have Enough Saved For A Down Payment
For many who are looking to purchase a home, particularly those who are in the market for their first home, a lack of savings for a down payment is holding them back. This is understandable as, according to data from the Federal Reserve Board, 40% of adults in the United States say they don’t have enough money on hand to cover a $400 emergency.
With so little in savings and the cost of housing going through the roof, it is easy to see why your average American has little to no hope of saving enough money for the down payment on a home. Consider this — the median home price in the United States is $200,000. In order to afford a down payment of 20%, you would need to have $40,000 on hand.
If a down payment seems far out of reach, a VA loan might be the perfect solution for your needs. This mortgage type allows you to purchase a home with as little as zero money down. This allows those who might previously have been incapable of affording a home the chance at purchasing a property. The end result is that you can start building equity now, rather than waiting around for years as you attempt to put back enough for a down payment.
Your Credit Isn’t Perfect
Unfortunately, life happens and it isn’t always easy to keep a pristine credit score. In fact, for many Americans, their credit is far from perfect. This can be due to unpaid medical bills, financial trouble in the past, or a lack of credit history. In many cases, you might not have even realized how bad of shape your credit was in until you reached out to a lender and they ran a report.
If you have recently realized that your credit is less than stellar, it can be extremely limiting in regards to finding a mortgage. Lenders are leery about providing a mortgage to anyone with a mediocre credit score. In many cases, if you do find someone willing to lend to you with a low credit score, you will receive extremely poor terms on your mortgage.
The good news is that for those who are eligible for a VA loan, a pristine credit score is not necessary. In many cases, you can still be approved for a veterans loan with a credit score of less than 700.
You Are A Surviving Spouse Of A Veteran
In certain situations, if you are looking to purchase a home and you are the surviving spouse of a veteran, you might be eligible for a VA loan. Your approval will depend upon a variety of factors, including whether or not you have remarried since.
For the surviving spouse of a veteran, it is worthwhile to look into the possibility of utilizing this loan to help with the purchase of a home.
Talk To Patriot Home Mortgage Today
If you are contemplating whether or not you should utilize a VA house loan, we invite you to reach out to our team at Patriot Home Mortgage today. We will be happy to explain to you the unique benefits of this mortgage, as well as provide you with information about the best time to utilize this loan.
Our team is happy to answer any questions you might have about additional financing options as well. We look forward to assisting you with the purchase of your next home.