Helpful Ideas To Understand VA Loans In Texas
Are you finally ready to buy your first home? Are you a veteran or active military personnel looking to buy a home? Well, there are challenges involved in buying a home. However, there are a few mortgage options available for veterans referred to as the VA loan. Here’s what you need to know about the VA loan, how it works, and whether you are eligible for it.
It is a loan offered by private lenders and guaranteed by the U.S Dept of Veterans Affairs. The VA loan is available to active duty service people, veterans, and their families when they want to buy a new home. It was introduced in the GI Bill in 1944 but has become very popular in the last few decades.
In the early part of 2019, at least 8% of house purchases were backed by a VA loan. It is a very attractive option when buying a new home. Even better, it’s easy to qualify and there is no down payment required for it.
How Does A VA Loan Work?
VA loans are part of the government (non-conventional) loans available in the market today. They don’t work like regular mortgage loans issued by banks or financial lenders. These loans are guaranteed by the government. It means that the government will repay part of the loan to the bank if you default your payments or in the event of foreclosure. In this type of loan, banks have less risk. As such, a lot of people can qualify for it. By 2018, the VA had guaranteed 610,513 loans for purchasing and refinancing homes.
What Are The Requirements To Qualify For A VA Loan?
To qualify for this loan, you must be current or former military personnel and looking to buy a home. You must also meet the following VA service requirements.
- You must be an active duty service member. You must have been honorably discharged after serving for consecutively 181 days during peacetimes or 90 days during a war.
- You must have served for more than 6 years in the Selected Reserve or the National Guard.
- You must be the spouse of a serviceperson who died in the line of duty.
For the application process, you need a certificate of eligibility (COE) to show the loan lenders that you are eligible for a VA loan. The COE should be applied on the VA website, the lender, or through the mail.
You can use any of the interactive features on our website or call us anytime to speak to a diligent mortgage professional directly. We hope to work with you soon! Click here to go to the second article in this series.