What You Should Know about VA Home Loans

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Tags: Veteran & Military Programs

veteran.pngVeterans served our country – now, it’s our turn to serve them. Wyndham Capital provides a home loan guarantee benefit that allows you to capitalize on more flexible-lending guidelines and a faster loan-approval process. We are able to provide veterans with more favorable terms because VA guarantees a portion of the loan.

 

 

What You Should Know About VA Home Loans

 

Benefits

 

Here are some of the benefits of a VA Home Loan and how it compares to a traditional mortgage:

  1. No down payment for qualified borrowers
    1. Conventional loans generally require down payments up to 20%
  2. Private Mortgage Insurance is not required
  3. Competitive Interest Rates
    1. Since conventional loans are not government backed, banks take on more risk while can result in a less-competitive interest rate.
  4. It’s easier to qualify
    1. Conventional loans have stricter qualification procedures.

 

Eligibility

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The VA Loan is designed specifically for people who served our country. However, to qualify, you must meet one or more of the following conditions:

 

  • You must have served 90 consecutive days of active service during wartime
  • You must have served 181 days of active service during peacetime
  • You must have served more than 6 years of service in the National Guard or Reserves
  • You are the spouse of a service member who died in the line of duty or as a result of a service-related disability
  • You must not have been discharged under dishonorable conditions

 

All recipients of a VA Loan must obtain a Certificate of Eligibility that explains your VA entitlement. While you aren’t required to reach a specific income threshold to use your home loan benefits, you are expected to have reliable income that will cover monthly mortgage payments. The VA also requires you maintain a certain amount of income left over each month after all major expenses are paid.

 

Rates

 

Rates for VA Home Loans are generally lower than a conventional mortgage. Your interest rate is influenced by several factors including your credit score, debt-to-income ratio, loan duration, and current market conditions. As with traditional mortgages, the higher your credit score, the lower your rate; however, because of the VA Guaranty, it still may be easier for you to qualify for a mortgage even if you have a low credit score.

 

 

Have more questions? Check out more specifics on or VA Loan Program.