Six things every veteran should know before purchasing their home!

When it comes to purchasing a home there are several things every veteran must know about their loan and their lender to make sure they get the best home loan possible.

Eligibility, funding fee's and APR's can be confusing. This blog is intended to help demystify the purchase process for Veterans.

1. Federal VA loans do not require a down-payment. A Veteran that meets all eligibility requirements for a VA loan is not required to make a down-payment when buying a home. Furthermore, your closing costs can come in the form of a seller concession. This is when the seller agrees to pay all or some of your closing costs as a contingency to the offer, leaving the Veteran with no out of pocket expenses at closing.

2. Veterans loans are not underwritten based on Credit alone. It is a common misconception that you can not get a home loan if you have a past bankruptcy on your record or late payments on your record. Not True. The Veterans credit will be considered but not scrutinized as heavily as some standard conventional programs. Many Veterans have extenuating circumstances that have caused checkered credit histories for them, this will not prevent you from obtaining a loan. Your loan is based primarily on your debt to income ratios and your eligibility.

3. The VA does not discriminate on what property types are eligible. Current VA loan limits for most states are set at $417,000 and there is talk of raising the loan limits. There is much stigma surrounding both FHA and VA loans regarding properties eligible for finance. This is an old stigma and a hurtful one. The VA will only discriminate on make sense issues, like a leaky roof, cracked foundation, noxious odors or issues that affect economic life or the livability of the house. If you can afford the house, most properties will qualify.

4. Veterans loans qualify for the best interest rates in the market! Perhaps the best feature of VA loans are the fantastic interest rates Vets qualify for. Because the loans are based on more than just conventional guidelines, Veterans get the same if not better interest rates than standard conventional borrowers do from banks. Even better is you qualify for this rate at 100% loan-to-value, whereas other banks will limit you to 80%.

5. There is no PMI attached to Veterans Loans. Unlike standard conventional loans that require Mortgage Insurance on all loans over 80% loan-to-value, VA loans have no PMI. This means the veteran saves a ton of money monthly when financing 100% of their homes value. Instead of PMI the VA charges a funding fee which varies based on the amount borrowed and how many times the veteran has used their eligibility. This funding fee allows Veterans to secure these fantastic interest rates and loan amounts.

6. Eligible Veterans can get their certificate of eligibility through a trusted local VA lender and apply for financing free. Va Loans are a fantastic resource for Veterans. Veterans should contact a local lender or their state VA and find out if they qualify for a Veterans loan. Some States even have local Veterans programs that have special rates and lowered funding fees for Veterans. If you are a veteran contact your lender or Veterans Administration for more info on Veterans loans.

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