VA Home Loan Rates – Getting a Great VA Home Loan Without Having to Pay Normal Closing Costs
If you meet the appropriate eligibility criteria for getting a VA home loan, it is most likely the perfect option for financing your new house. You will not need any down payment, there will be no monthly mortgage insurance (MBI) premium, and your credit score requirements aren’t as strict as they normally are with most traditional or secured mortgage loans. The Veterans Affairs Department distributes funds each year to qualifying veterans based on need and the amount of their homes. There are some eligibility standards that must be met in order to receive a VA home loan. You must:
Applying through the direct lender is always free and can be done online. Many lenders will offer free quotes through their websites or over the phone. When you contact these lenders, it is important to ask them about the qualifications needed to qualify for these loans. This may include: owning real estate within the county or state that you are applying in, being a veteran, age 60 or over, and meeting other credit requirements. There are also other criteria that are in place depending on the type of mortgage that you are getting.
There are many factors that go into determining what VA home loan rates are. These factors include: your credit rating, the appraised value of your house, and the price of repairs that will need to be made. Although you can qualify for a fixed rate, this usually isn’t the case when it comes to home loans for veterans. Instead, most borrowers opt for adjustable rate mortgages. While they may have a good interest rate, they are susceptible to future interest rate hikes if they don’t maintain their payments on time.
Another factor that goes into determining which mortgage rates are available for those who are a veteran is the qualification requirements that go into the VA home loan program. The eligibility requirements vary from lender to lender, so it is important that you get specific information about what you need to do to see if you meet the requirements for eligibility. The most common eligibility requirements require that you are in one of the following situations: disabled, aged 50 or over, or a member of the Selected Reserve.
There are some things you can do to see if you are eligible for VA home loan rates for your specific situation. To start, talk to a representative of your local VA branch. They will be able to tell you if you are eligible under the proper circumstances. Another thing you can do to see if you are eligible for this program is to contact your mortgage company. A lot of mortgage companies offer this program, but not all of them offer it when it comes to the choice of lender.
If you are currently enlisted in the military and are in the eligible category described above, your mortgage company may be able to help you with special rates. If you are a member of the Selected Reserve and are in the eligible category described above, your mortgage company may be able to provide you with special financing through the Reserve Nurse Credit Program. Through either option, you can often get VA home loan rates that are at a much better rate than what you would expect.
But there is one condition that you must fulfill to be eligible for these government backed loans. You must have been honorably discharged from the military for at least 90 days before being approved. Although this might seem like a difficult standard to meet, most private mortgage insurance lenders and banks only make loans to people who have been honorably discharged. This is because they know that sometimes the person who served in the military has difficulties returning to civilian life after a service commitment. Therefore, these lenders often prefer to give VA home loan rates to people who have honorably discharged their loans, as well as to other veterans.
One of the advantages to using a Veteran Affiliate or VA lender is that you can often negotiate the price of your mortgage with them directly. Because of the significant value placed on the reputation of these mortgage lenders, most do offer an open dialogue regarding price, discount points, and any other terms that you might be interested in. Often these lenders have private mortgage insurance firms that they work with directly, which enables them to obtain even better deals. The result is that if you use a VA or Affiliate lender, not only do you get quality mortgage products, but also you often get a competitive interest rate.