This is the opening blog post for 4hhomes.com and it is all about why a VA loan can be the best choice for a qualifying veteran. Before we get started, we are the only ones in Texas that can help get a Veteran qualified, all the way down to a 500 FICO Credit Score. This is the key element for many veterans, although it may not apply to you directly. If this does not apply to you, but if you know a veteran that it would help out, please let them know about our programs and what we can do for them. We are able to do this because it’s what the VA will allow, here is a link to the guidelines if you need to do further research VA Benefits
Ok so, today we are going to discuss the many reasons why so many veterans choose to take advantage of their VA Home Loan, as opposed to other loan programs. To read how we helped other Veterans click here: Testimonials
Here are the top reasons for using your VA Home Loan:
The VA Loan will finance 100% of the appraised value of the home you are trying to purchase.
Most people phrase this as, “there is no down payment requirement for a VA Loan”, this is not technically correct. If the purchase price of the home is more than the appraised value, the borrower (that being you) will have to come up with the difference at closing. So just remember, the VA Loan will finance 100% of the appraised value.
No private mortgage insurance. Private Mortgage Insurance or PMI as it’s called, is insurance that protects lenders in the case a borrower cannot make their payments and they default.
PMI is applied on loans unless the borrower puts 20% down. Most veterans cannot do this, so the VA ensures these loans for them. This allows their payment to be lower and for the veteran to build more equity, faster than any other loan program. By the end of the loan’s term, the veteran has saved thousands of dollars.
Basic Allowance for Housing (BAH) can be used as qualifying income.
BAH varies based on your pay grade, but this is a huge leg up for active military members. In a lot of cases, BAH can cover all of your mortgage costs. So not only can you use your income, but you combine it with your BAH to further your chances of qualifying for the home of your dreams.
Veterans with 100% disability can have their property taxes waived, which will allow them to qualify for more house.
In Texas, a large portion of your mortgage payment will be property taxes. Lenders must count the property taxes in the payment when determining how much you qualify for. For those with a 100% disability rating, your payment will be effectively hundreds of dollars less, which equates to thousands more in home price. It could be the difference between qualifying for the home of your dreams or not.
Hopefully, this information helps you in deciding which program is best for you. Regardless of the program, 4HHomes is here to help. We will provide knowledge, guidance and an excellent team to ensure you get into the home of your dreams. We look forward to working with you and let’s get started! Click here to apply: Apply now