If you're looking to buy a house as a Texas veteran, you can find and get the dream home for your family with a Texas VA loan. Since there are no down payments necessary, Texas VA loans are simple for eligible Texas veterans to obtain. There are also several other benefits of this loan type to get VA mortgaged homes.
Unlike conventional and FHA loans, VA loans have no borrowing restrictions and competitive rates. Veterans Affairs backs VA loans to help service members and assist Texas veterans who have served the nation. The VA states, “The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is usually lower than the rate charged on other types of mortgage loans.”
For loans of more than $144,000 for the purchase or construction of a home or to purchase a residential unit in a condominium, or to refinance an existing one, VA-guaranteed a loan for an interest rate reduction, the maximum guaranty is the lesser of 25% or $104,250 which is 25% of the Freddie Mac conforming loan limit for a single-family residence for 2007.
However, VA will guarantee up to 50% of a home loan up to $45,000. The minimum guaranty amount is $22,500 for loans between $45,000 and $144,000, with a maximum guaranty of up to 40% of the loan up to $36,000, subject to the amount of entitlement a veteran has available.
Steps to Getting Texas VA Home Loans
1. Decide on a lender
Using an approved VA-specific lender is best because they are mostly better familiar with how the VA program works, making the home loan process for eligible members more accessible and hassle-free.
2. Obtain an eligibility certificate.
A certificate of eligibility is necessary to proceed with your application after choosing a lender. This certificate demonstrates that applicants are eligible Texas veterans who meet the VA loan benefits eligibility requirements. Quickly get a certificate of eligibility via a lender portal or the official government website.
3. Obtain a VA loan prequalification.
Pre-qualification is not a must, but it can help to speed up the loan application process.
4. Look for a residence
Service members can look for homes online or work with a real estate agent. To ensure that no aspects are overlooked, working with a real estate agent familiar with VA financing, and the home-buying process is best.
5. Hand over the purchase contract to the VA lender
After receiving the required paperwork, a VA lender will request an appraisal that must be carried out by a specialist who has obtained VA certification to ensure the house satisfies VA financing requirements.
6. Close the loan and settle into your new residence.
The lender and the borrower will sign documentation indicating their agreement to the written loan terms and conditions. The buyer will then, if required, present proof of homeowner's insurance and cover any closing costs.
Eligibility Requirements for VA Loans
You must fulfill or belong to one of the following categories to be eligible for a va loan in Texas:
- You must be an active duty service member or an active member of the American military.
- You participated in the National Guard or Selective Reserve for over six years.
- You served in the military for 90 days during a war or 181 days during peacetime and received an honorable discharge. Make sure you have the required paperwork.
- Your late spouse was a military person who lost their life in the line of duty.
Also, note that you must complete a Certificate of Eligibility form to apply for the loan.
You must also meet your lender’s credit and income requirements to qualify for any va home loan.
Pre-qualifications and Loan Limits
With a Texas VA home loan, there is no limit to how much you borrow. However, the VA will guarantee just 25% of your loan. Also, asides from the income requirements, your financial history and credit score will all affect the amount your lender will allow.
Benefits of the Texas VA Loan Program
There are a lot of reasons veterans should consider making Texas a home. Besides the fact that Texas employers love to hire veterans, the cost of living is relatively low, there are VA hospitals and clinics in various cities across the state, and there is no state income tax. Also, veterans no longer on active duty seeking a job should choose Texas because many jobs are veteran-friendly.
Qualified Texas veterans and active duty service members in Texas can get competitive-interest loans with the VA loan affairs.
Among the advantages of these programs includes the following:
Limitless Access to Borrow and Limited Liability
Unlike conventional and FHA loans, VA loans don't have a borrowing limit. Although, the VA will support only 25% of your debt.
No Down Payment is Necessary
Veterans eligible for a VA loan can easily obtain Texas VA loans because there is no down payment needed. More than half of all VA mortgage purchases of homes do not require a down payment.
You Can Complete It Early
A VA loan does not have a prepayment penalty. You can apply for another VA mortgage if you pay off your first home or decide to move to another permanent residence. You can qualify for a VA home loan even if your financial position isn't optimal. You can apply for a VA mortgage two years after filing for bankruptcy.
Neither a minimum credit score nor monthly mortgage insurance is required
Private mortgage insurance (PMI) and private lenders can increase your monthly payment by hundreds of dollars. So, if you utilize a VA loan to buy a home in Houston, you are exempt from paying for PMI. Also, no minimum credit score is needed, but some lenders might consider it for your loan application.
VA Funding Fee
A proportion of the loan amount is based on funding fees; however, the percentage requirement for each loan type varies.
Home purchase VA funding fees range from 1.4% to 3.6% of the loan amount, while VA refinances costs range from 0.5% for an IRRRL refinance to 3.6 percent for a repeat VA borrower using a cash-out refinance. Some veterans are not required to pay the financing fee for any VA mortgage.
The VA funding fee's percentage is determined by several criteria, such as:
- Purpose of the loan (refinance, cash-out refinance, home purchase, etc.)
- Type of house
- Whether or not you have ever used a VA loan
Get a VA Loan in Texas Today
If a VA loan is something you're thinking about for your new house, you should evaluate your existing circumstances and home-buying objectives to determine if this sort of loan is appropriate for you. Get ready to find your ideal home, and get a VA Loan in Texas today!
Company: Security America Mortgage, Inc
Company Address: 7514 Shadyvilla Ln, Houston, TX 77055, United States
Company Contact No.: +18554682669
Company Email: [email protected]
Original Source of the original story >> Texas VA Loans
