If you’re a veteran, you’re well familiar with many of the programs designed to get you up and running as a private civilian. From benefits that help you get back to school, to programs designed for work placement and community leadership, there are many systems set up to make life just a little bit easier. One of the biggest is access to a VA-guaranteed home loan.
If you’re unfamiliar with a VA-guaranteed loan, it’s something your real estate agent in can tell you a lot about. Not only is this a common type of home loan, it’s one that virtually any veteran can take advantage of to establish their homestead after active duty.
All About VA Loans
This type of loan is typically issued by a private lender and covers much more than a conventional home loan—including eliminating the need for a down payment when it comes time to close a sale. You’re also guaranteed an exceptional interest rate with a VA loan, which is often close to the current market lows. Plus, there’s no monthly mortgage insurance premium to pay! Finally, there are no prepayment penalties to worry about.
Many lenders are more than willing to give VA-guaranteed home loans because the lenders themselves are protected from loss. In the event that something happens and you can’t pay back your loan, there are protections in place that mitigate liability. The U.S. Veterans Administration will actually provide oversight in foreclosure situations to find alternatives that are beneficial for everyone involved.
Is a VA Loan Right for You?
It goes without saying, but you have to be a military veteran (honorably discharged) to apply for a VA-guaranteed home loan. This is the chief stipulation—alongside the idea that the veteran in question must also live on the premises in the home the loan is being applied to.
In addition to the veteran aspect of the loan, anyone applying for a VA-guaranteed loan must have acceptable credit worthiness and sufficient income when it comes to being able to afford mortgage obligations in addition to other financial demands. VA-backed loans are determined on a case-by-case basis, but most veterans are eligible as long as they have available entitlement.
The other critical thing to remember about VA-guaranteed loans is that they’re made through third-party lenders, who may have their own stipulations for who qualifies. This could mean different credit score worthiness or income demands. It’s important to remember this when pursuing an application.
Learn More About VA-Backed Loans
If you’re a veteran thinking about a VA-guaranteed loan for a property in Alpine, Texas, be sure to speak with a qualified area Realtor. They’ll be able to provide you with the information you need to apply for this type of loan and can help guide you through the steps of finding a home that meets your criteria, as well as those of a lender. In many cases, this type of loan can trump even FHA or other housing authority-backed mortgages, making it a smart opportunity for those who have previously served.