If you a currently in the military or are a veteran, now is the perfect time to take advantage of a VA loan, especially if you have been having trouble getting a home loan approved. VA loans are guaranteed by the Veterans Administration and include special loan programs not available to the general public.
In a recent article by the Navy Times, the number of VA loans guaranteed declined last decade as conventional loans were easier to get, but have since bounced back. The highest number of loans in the program’s history were guaranteed last year, and it is likely that this year will be high in number as well.
If you have the big three things lenders are looking for: excellent credit, a low debt to income ratio and enough money for a large down payment, a traditional mortgage is still going to be a better option. For military and veteran homeowners who do not meet these requirements, a VA loan makes perfect sense.
VA home loan benefits can be used multiple times and don’t expire, don’t require a down payment, don’t require a minimum credit score and don’t require private mortgage insurance. A common misconception is that the VA is the one lending the money, when in fact they are just guaranteeing the loan made by about 1,500 lenders nationwide. This means you can talk to a specially trained VA consultant at a top national lender such as loanDepot VA Mortgage.
Fixed rates for guaranteed VA loans are currently well under 4 percent, no matter if you chose a 15, 20 or 30 year loan term.
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