If you are a veteran of the United States Armed Services living in Texas, you may already know that it can be difficult to purchase a home. The VA (Veteran Affairs) loan program in Texas is making it easier and more beneficial for home ownership to become a reality for veterans.
What is a VA loan?
Available only to veterans, these exclusive loans provide applicants with a quick and easy way to purchase a home. Home ownership is appealing because it promotes family stability and opportunities for building equity. VA loans are serviced by lenders in the same way as other types of loans, but the backing by the VA department enables the lenders to offer lower rates and better terms. Therefore, VA loans are very beneficial for qualified applicants.
Who is eligible?
The VA loan program is one way that veterans who have served the United States are rewarded. Veterans must meet some criteria to qualify:
- Served in the military and be an American citizen
- Length of service included at least 90 days of active service
- Not dishonorably discharged at any time
Applicants meeting these requirements should obtain a certificate of eligibility from the VA office, and contact a VA loan specialist for help with the next steps in the process of applying for a loan.
What are the benefits with VA loans?
These loans targeted to veterans provide some of the greatest advantages of any loans available in the mortgage industry. Some of these benefits include:
- No down payment
- No mortgage insurance requirement
- No high cash reserve requirement
- Minimal credit and income standards
- Multiple options for loan term length
- Reduced closing costs when applicable
- No early repayment penalties or fees
Do VA loans only apply to new purchases?
You can get the benefits of a VA loan to refinance your current home mortgage in addition to new home purchases. Some home owners desire to refinance their loan to get a lower interest rate or extend the term of the loan. Others use refinancing to gain access to their home equity to pay for expenses or home improvements. The Texas VA streamline refinancing program allows veterans to switch to a new loan without some of the fees or paperwork associated with most refinancing options.
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