Texas VA Home Loans
Is a VA Loan the right option for you?
There are three core advantages of choosing a VA Loan and that’s, that it’s specifically tailored to meet the needs of veterans, current service members, and the families of the military with flexible terms. These loans are Government backed and make it possible for veterans to get the best financing available to purchase a new home or refinance an existing loan.
The three main ways it benefits Veterans are:
- It doesn’t require a down payment
- There’s no monthly mortgage insurance
- There are competitive rates
Saving for a down payment on a home can be extremely difficult for anyone, so not having to put one down makes it easier to get into your new home.
Mortgage insurance can add an additional 5-10% to your monthly mortgage payments when you put down anything less than 20%. However, this doesn’t apply to VA Home Loans since the programs allows for 100% of the loan to be financed through a lender. By not adding mortgage insurance you can save hundreds per month on your mortgage payment.
Interest rates for VA Loans are extremely competitive when you compare them to their traditional counterparts. Paying a higher interest rate can make a huge difference in how quickly you’re able to pay down your mortgage.
What is a VA Home Loan?
A VA Home Loan helps active duty, veterans, and eligible surviving spouse become homeowners. As part of their mission to serve you, they help provide a home loan benefit, and other housing programs to help with the purchase of your new home. VA Loans are provided by private lenders, that include banks and mortgage companies. The VA guarantees only a portion of the loan, which helps the lender to provide you with some more favorable terms. Which allows you to purchase your home at a competitive interest rate without providing a down payment or mortgage insurance.
VA guaranteed loans are available for your new home purchase. To be eligible, you need to have a good credit score, sufficient income, a valid Certificate of Eligibility (COE), and meet service requirements.
How to Apply?
VA Home Loans can be obtained through an authorized VA lender of your choosing once you obtain an COE (Certificate of Eligibility). You can obtain one through e-benefits, by mail, or even through your lender.
What is a Certificate Of Eligibility?
Simply put, the certificate is issued to a veteran who has been discharged favorably and is used to prove eligibility. Before you apply for your VA Home Loan, you must have a good enough credit score, sufficient income, and a valid COE to be eligible. Ask your licensed Texas Mortgage Lender for more details.
Your VA Loan ready checklist
When you setup your meeting with your Texas Mortgage Advisor, make sure you’re prepared. Generally speaking, here are some of the documents you want to have ready when you have your meeting:
- Pay stubs for the last month or your most recent leave and earning statement
- Your last two years of W2s for all borrowers and all employers
- Your most up to date bank statement (all pages)
- Your purchase contract
- Deposit check for about $400 for the VA home appraiser. (Note: These fees could be higher so always check with your Texas Mortgage Adviser)
- Certificate of Eligibility (COE) (Your Lender should be able to help you obtain this on your behalf or through e benefits
- Discharged or retired veterans need to provide a copy of their DD214. Veterans who are still serving should provide proof of current service or their current re-enlistment paperwork
- Disabled veterans may have to provide a VA disability award letter
- If you do pay or receive child support, supply your divorce decree and proof of on time payments
- Be sure to always ask your Texas VA mortgage Adviser for any specific documents needed for your unique situation
Once your Texas VA Mortgage Advisor has the proper documents in hand and you have fully completed the application process you will receive an important document.
This letter is a must before you contact your Realtor or start your new home search, and in most cases is required before you can make an offer on the home.
*Not all borrowers will qualify, credit approval is required