Using a VA Streamline Loan
Here is a smart idea for anyone with the opportunity to do so. There are a number of benefits to the veteran, which will be presented in the following paragraphs. VA loans tend to have more flexibility and to be more attainable, due to the fact that more lenders offer them. It is often easier for the veteran to qualify, making it a convenient choice compared to other types of loans. Here are just five of the main reasons to choose a VA streamline loan!
- The qualification process for that of a VA loan is much easier than for one of a conventional loan. A VA loan is a specific type of loan available to US Armed Service veterans, who have served at least 90 days during wartime or 181 days during peacetime and were not “dishonorably discharged”. They may be a retired veteran or the spouse of a veteran who died in the war or due to service-related wounds and have no re-married. There are many ways to qualify for a VA loan.
- Credit standards are much less strict. Typically this is where many borrowers have trouble with their loans. The VA looks for a clear 12-month credit history. Also, credit scores do not affect the rate of the loan.
- There is no down payment required. This payment could be used for many other things, such as savings, paying off other debts, possibly a payment on the home later, or maybe a family trip! If the borrower chooses, they can make a down payment, but just keep in mind that it is not a requirement!
- The amount that the VA allows the veteran to qualify for is generally quite a bit larger than that of a conventional loan while also having lower interest rates. (Rates follow the market, but can become even lower if the veteran does opt to make the optional down payment.) A veteran can get a home for $0 money down and up to $1 million! Most states in the United States have a loan limit of $417,000, as chosen by lenders; however, in some states the max goes up to $625,500. Specific lenders in any state will allow higher loan amounts to fund, up to a maximum of $1,000,000.
- The government limits the amount that can be charged in closing costs, origination fees, and appraisal fees. There are also no mortgage premiums required. Lenders are prohibited from requiring one. This is because of the guarantee put on the loan.
Veterans should take advantage of the VA loan if they can qualify for this option. Another perk to the veteran is if they have any kind of service disability. They can look into getting their funding fees waived as well. There are so many benefits to the VA streamline that it would be hard to not look into it. It is definitely one to take into consideration when buying a home.