Many people are apprehensive about the benefits of VA home loans because of the many stories that have not painted a particularly good picture concerning these types of finances. VA home loan features and its so-called “perks” are often questioned because of these tales. You may be doubting the success of an application because your credit is not up to scratch or for fear you may not afford the costs involved. Although there are many myths of a VA home loan, a closer look at the truth behind what these finances can offer clarity on its application and what it can really do for your needs.
Only Certain Categories of Veterans May Apply
This is a clear myth. All military personnel including National Guards, veterans, active military men and women, and their spouses can qualify for veteran home loans. If you are however, unsure of your eligibility, it is important to contact your VA home loan professionals who can advise on qualifying criteria. Always learn of the options available. Do not miss out on the opportunity of taking out a VA loan.
You Need Good Credit Scores
The Government program governing home loans does not determine credit ratings for qualifying finances. It is the lender who examines your baseline credit to determine the sum you are qualified for. A score around the 600 to 620 mark is deemed acceptable. It is important to exercise positive debt management to ensure that your credit score does not hinder your chances of a successful application.
VA Home Loans will Charge Out of Pocket Rates
The first benefit of qualifying for a VA loan is the lack of a down payment. All qualifying military and veteran personnel will not have to pay the extra costs of a 10% or greater deposit when looking to purchase a home. There should be no extra expenses at closing cost either. To benefit from these perks, always find the services of a reliable and a reputable VA loan provider. This includes the provision of a contract and a fair assessment of the terms and conditions. It is the best way to protect yourself against any hidden costs.
The Interest Rates of VA Home Loans are high
The provision of a VA home loan does not include higher interest rates. If anything, the VA home loan interest rates are more affordable than that of a conventional loan. In the process of seeking a veteran home loan, always look for the annual percentage rate. Your lender will offer an estimate on the rates you can expect to pay which you can compare to the APR.
To learn of the many perks associated with veteran financing and dispel those VA home loan myths, call on the Hitchens Team. We are your military and veteran real estate specialists available to assist with all property requirements.