Key Takeaways
The United States Department of Veterans Affairs offers at least eight different home loans. Down payments are helpful but not compulsory to secure these loans. You must work with a VA-approved lender for these home loan options.
Do you want a home but struggle to compete? Your solution could involve a convenient VA home loan in Texas. Below, discover the benefits of receiving a home loan with the aid of the Department of Veterans Affairs, as well as how to apply.
Defining a VA Home Loan
As a special type of mortgage, the US Department of Veterans Affairs backs the VA home loan to benefit former military personnel. In a competitive market, these VA home loans help veterans gain an advantage in finding a home and transitioning into the next stage of their lives.
VA Home Loan Types Worth Looking Into
Purchase
You can use a purchase loan to buy a house. You must intend on occupying your home within 60 days of closing however there can be an exception made for up to one year if you are unable to occupy within 60 days.
Jumbo or High Balance Loans
A VA jumbo loan also known as a VA high balance loan is a loan that is above the county loan limit. There is no down payment requirement if you have full VA entitlement however if you do have an active VA loan, then there could be a down payment required. Reach out to Shirley Mueller and team to get a better understanding of your circumstance.
Refinance
With a refinance loan, you can borrow up to 100% of the value of your home, whereas cash-out refinancing allows you to borrow 90% of the value. An Interest Rate Refinance Loan can lower your interest portion. It does not require a home appraisal.
Renovation
This option allows veterans to purchase a house that needs remodeling. You can factor the cost of renovations into the amount you borrow. A VA renovation loan allows you to make all repairs except for structural or foundation repairs.
Manufactured Home
With a VA manufactured home loan, you can purchase a prefabricated home and place it on a piece of land that you already own. Alternatively, you can finance the home and land at the same time. If you already own a manufactured home, you can refinance it or fund improvements or renovations.
Construction
A VA construction loan funds the construction of a new home without a down payment. You can choose between a single or double closing option. The two-time closing option allows you to make more changes during the building process, a great choice for veterans who are not working with a professional contractor to build their homes.
Supplemental Home Improvement
Are you performing minor renovations or addressing small maintenance issues? Add the expenses to your existing loan rather than take out another one.
Benefits of a VA Home Loan
Veterans that receive a VA home loan in Texas will discover several benefits throughout the process, including the following:
No Down Payment
While sometimes a down payment makes sense, few veterans will pay one to cover closing costs. However, if you can afford a down payment and it would lower your monthly home loan repayments, consider paying extra upfront. It could help maintain your financial security long term.
No Private Mortgage Insurance
Most mortgage assistance loans require purchasers to maintain insurance in case they default. As part of your military benefits, a VA loan won’t require private mortgage insurance, which saves you a lot of money.
Seller Concessions
With a VA loan, the seller is allowed to pay up to 4% in closing cost and unlimited towards your pre-paids and escrow account. Therefore you can structure your loan to where you would not have to bring any money to closing. In addition to the seller being allowed to pay your closing cost, the VA also allows the seller to pay up to 4% towards the Veteran’s debt. This is a huge benefit especially if you are wanting to decrease your debt so you can afford more house.
No Loan Limits
Some lenders might impose their own maximum lending limits. However, the government doesn’t set a ceiling for fully-entitled veterans. Contact Shirley Mueller and team to find out what your pre-approval amount would be based on your debt to income ratio.
How To Obtain a VA Home Loan? Use the following VA loan requirements to obtain your loan:
- Determine Eligibility
- You’re on active duty and have served continuously for at least 90 days.
- You’re a veteran, national guard, or reserve member who served at least 90 continuous days during your dates of service.
- You’re the spouse of a service member who is missing in action, died during service, or passed away from service-related injuries.
- Provide Certificate of Eligibility
Your certificate discloses how much money remains on your VA entitlement, so lenders know what they can safely lend you. They can request the certificate directly, or you can request one on the VA website.
- Meet the Requirements
- In addition to service requirements, you’ll need the following:
- Proof of a consistent two-year history of employment if you are employed
- If retired or disabled, proof of most recent income documentation for each income source
- A minimum credit score above 550
- A plan to occupy the home as your primary residence
- Verification of no defaulted or deferred federal debt
- Obtain a VA appraisal to confirm the loan amount is not more than the value of the property
- The appraisal to confirm the home is safe, sanitary, and secure as determined by the VA.
- Find a Lender
It’s important to use a loan officer that specializes in VA home loans. Shirley and team consistently receives feedback from Veterans who wish they had started with someone that specializes in the loan program because they were either given the wrong information or were requested to provide and do things that were unnecessary for the program.
- Gather Documents that apply to you
- 30 days of paystubs if you receive a W2 from your employer
- Most recent two years of tax returns if you are self employed
- Year to date profit and loss statement if you are self employed
- VA disability awards letter
- Most recent retirement statement
- Most recent social security statement
- Most recent 30 days of bank statements
- Your DD214 (if separated from the military)
- Statement of Service (if Active Duty)
- Find a Home and Appraise It
Once you go under contract on a home, you will send this contract to Shirley and the team. We will then prepare your loan documents, send you estimates and then lock your loan. After that we will order your VA appraisal. Your VA appraisal takes a minimum of 14 calendar days to be returned.
- Prepare Closing
The loan underwriter prepares the documents for closing, which you’ll receive at least three days before. Be sure to review everything for accuracy.
- Close the Sale
You’ll attend the closing in person, where you’ll receive the title. You now own your home!
Call Shirley Mueller and the team to Learn More! With the housing market so competitive, a VA home loan in Texas can greatly improve your chances of owning a home.
Why not call me, Shirley Mueller, your VA mortgage home loan expert to help you through the lending process? Schedule a consultation today!
