The U.S. Department of Veterans Affairs has helped countless veterans finance their home ownership goals. While you have the choice of a conventional loan offered by other mortgage lenders, there are some significant benefits to VA loans. Here are some of the most important advantages to consider:
No Down Payment
The most famous benefit of VA loans is the lack of down payments. Homebuyers taking out a conventional loan typically need to pay around 3% of the home's purchase price up front as part of their loan terms. Even a small percentage can mean tens of thousands of dollars out of pocket. A VA loan will help you save this money instead of potentially draining your hard-earned savings.
No Private Mortgage Insurance
Private mortgage insurance is required by lenders to protect them against the chance of you defaulting on your loan. Not only do these insurance policies have hefty upfront charges, the ongoing annual cost can last the entire life of your loan. Luckily, with VA loans, there is no requirement for private mortgage insurance, saving you money and time.
Easier Financial Requirements
Mortgage lenders conduct a careful analysis of your financial profile when you apply for a loan. For most lenders, credit score requirements can be especially strict. Even if you qualify for a loan, a lower credit score might mean higher interest rates or private mortgage insurance premiums. VA loans don't have a credit score requirement, so no matter what state your credit is in, you can still be approved for a loan.
The same goes for debt-to income ratios. While VA lenders still consider DTI ratios in the approval process, the requirements are much more flexible and forgiving. Even with a high debt-to-income ratio, you can be approved for a VA home loan with other financial factors like credit score working in your favor.
These are only a few of the major benefits offered by VA home loans. Remember these factors if you're deciding between a VA or conventional loan so you can make the best decision for your situation.
About the Author
Tina Broyles, DRE 01009212 & NMLS 91630
Headline: Tina Broyles: Your Expert Real Estate Agent for Fremont, San Jose, and the Bay Area | eXp Realty
Bio:
As a dedicated real estate professional and a long-time resident of the California Bay Area, I have been proudly serving the real estate community since 1987. My mission is to provide my clients with unparalleled professionalism, in-depth market knowledge, and a caring approach that has resulted in a business built almost entirely on referrals.
Your Trusted Real Estate Advisor in the Bay Area
I specialize in the vibrant and diverse real estate markets of Fremont, Campbell, San Jose, Saratoga, Cupertino, Sunnyvale, Morgan Hill, Santa Clara, Mountain View, and Milpitas, CA. With over three decades of experience, I have a deep understanding of these communities and can provide you with the insights you need to make informed decisions.
One of the most consistent compliments I receive from clients is about my responsiveness to their needs. Your goals are my top priority, and I am committed to being there for you every step of the way. I am honored to have been voted "Best of Milpitas" every year from 2000 to 2020, a testament to my dedication to my clients and my community.
About My Business: eXp Realty
As part of the innovative eXp Realty team, I bring a diverse set of skills and a commitment to excellence to every transaction. We leverage cutting-edge technology that is "beyond expectation" to provide you with a seamless and efficient real estate experience. My team and I offer the perfect balance of experience and professionalism to help you achieve your real estate dreams in the Bay Area.
Community Involvement
I believe in giving back to the community that has given me so much. I am a happily married mother of two and a proud grandmother to two beautiful granddaughters, Audrina and Chesney. In my free time, I enjoy golfing, exercising, and my weekly Bible study. I am also passionate about serving the homeless community in Milpitas and supporting our local businesses.
I would be honored to get to know you and your family and put my extensive real estate experience to work for you.
Credentials:
