Veterans Affairs Home Loans
The VA loans, just as the name suggests, are designed to provide long-haul financing options to American veterans. VA mortgage loans in Arizona are typically given out by the federally qualified lenders and are insured by the American Department of Veterans Affairs. The VA is the one that determines the eligibility and offers a certificate of eligibility, COE, to all the qualified applicants. These will then go to submit the COE to their preferred mortgage lenders. For eligible servicemen and women, active duty military, reserve members, current National Guards, and he retired veterans, an Arizona VA loan is much easier to land compared to other types. The VA loan is a mortgage loan plan that was designed by the U.S. Department of Veterans Affairs before the close of the Second World War to help qualified veterans and their families receive home financing. The rules and mortgage terms, as well as guaranteeing the loan is the work of the Department of Veteran Affairs.
Since the VA usually guarantees this loan, the Arizona lender is cushioned against loss in case of borrowers defaulting. Therefore, the VA loan was designed as a reward for the great work done by the servicemen and women. It has low rates of interests compared to other loans. However, the closing costs that the seller can pay are low and could be up to 40% of the total loan. It is important to note that for all VA home loans, a termite inspection report is a must. How cool?
Speak with an experienced VA loan specialist immediately – (855) 501-5927
Benefits of VA loans
No Down Payment
This is the main benefit of a VA loan. Qualified VA loan applicants can buy up to a county’s conforming loan limit with no down payment. This is because, with conventional and FHA loans, veterans and service members could take years to save the kind of cash required. The limits for these other loans also change periodically and are higher in other areas.
No PMI, Private Mortgage Insurance
With FHA loans, for instance, an upfront mortgage insurance premium and annual mortgage insurance are required. These conventional home buyers will incur an expensive monthly cost sometimes throughout the entire loan term. VA loans have no mandatory fees, and the program can continue for future generations as well.
Looser Credit Requirements
Although the credit score requirements have started to loosen in many conventional loans, this is still not easy for any veterans and military homebuyers. The borrowers will be expected to have a high credit score to get better rates of interest. With a VA loan, however, a credit score of at least 620 is required.
Bankruptcy and Foreclosure
During these hard financial times, the VA loan can cushion you from being left out. It is possible to get a VA home loan in just two years after you have been removed from bankruptcy, foreclosure, or a short sale. In some instances, veterans who file for the chapter 13 bankruptcy protections can get a VA home loan after a year. Another thing is that they have a government guarantee meaning that you do not have to worry even when you cannot make your monthly payments. This also allows for better loan terms compared to other riskier loans.
VA Loans Come in Many Varieties
Unlike in other loan types, the VA loans can have an adjustable or a fixed rate. They can additionally be used to purchase a condo, home, new-built home, duplex, manufactured home, and other properties. The loan can also be used in refinancing the existing loan, make improvements or repairs to your home, or even make the home greener. These numerous choices make it ideal for people in different situations.
Eligibility and Requirements
- VA loans are only available to servicemen and women, and their eligible spouses.
- Eligible individuals can borrow up to 90% of the reasonable value amount when refinancing a home
- A VA funding cost of 0 to 2.15% is paid
- There is the possibility of a 100% financing option without second or private mortgage insurance
- The house in question must be the primary residence which must be occupied within 60 days after the loan is closed
- The qualified individuals must remain in the home for at least three years
In the case of the surviving spouses, there are some special requirements for qualification. The surviving spouses of the veterans must stay single until the age of 57, after which they can be allowed to remarry. Spouses of a completely disabled veteran who died in the line of duty or due to related injuries can also be eligible. These spouses and living veterans have to provide their DD-214 copies. The certificate of eligibility can be acquired online or by contacting the Arizona VA office for additional assistance. By visiting our website, our dedicated Arizona mortgage pro experts team will be ready to assist you with any query that you might have.