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For questions about a VA Loan in the Austin area, please call a VA Loan specialist at 512-357-7045
If you are looking for a VA loan in the Austin, Texas area, you are in the right spot.
If you or a member of your family is looking to purchase a new home and you or a relative served in the military and are a veteran, a VA loan with a low fixed payment can help to reduce the pressures that come with traditional mortgages dramatically.
Traditional Home Loans vs VA Home Loans in Austin, TX
The VA Home loan is one of the most beneficial programs in existence for prospective home buyers. VA Home Loan program recipients generally receive the following benefits that traditional mortgage borrowers don’t get:
Interest Rates No PMI 0% Down at Signing
There are not many loan programs remaining that offer a zero-down policy to recipients at signing. Veterans and members of their families who qualify for VA Home Loans are among the few who can still receive this valuable benefit. In addition, you are not required by lenders to buy Private Mortgage Insurance (PMI) since the federal government backs the loan.
Eligibility
There are some basic requirements for VA loans in Austin, TX, that need to be met in terms of income and service if you are interested in participating in the VA Home Loan program.
There isn’t any defined threshold income that disqualifies or qualifies you from being able to apply for the VA home loan program. However, the VA does expect that recipients of a VA loan will have a reliable income & money for covering monthly expenses. That just means that the VA requires borrowers to have an adequate income after their significant monthly fees are paid to cover things such as transportation, food, and/or any emergencies that might occur. The residual income requirements for the VA help to ensure borrowers can keep up with their monthly mortgage payments. This ensures that they remain in business.
The VA Department of Affairs will ultimately determine who and what type of property is eligible for their loan program; however, military personnel, veterans, and their families can check the basic service requirements to be eligible today.
If you:
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Certificate of Eligibility (COE)
After you have learned that you qualify for a VA loan in Austin, the next thing you need to do is apply to obtain a Certificate of Eligibility (COE). This will verify to the lender that you have been approved to get a VA-guaranteed loan. Your COE can be ordered online via the eBenefits portal at the VA website. In many cases, you can also ask your lender directly for the certificate from the site.
Benefits
We know that it can be very daunting to return home from overseas and then rejoin civilian life. It is also well known that numerous veterans struggle with homelessness and mental health issues. In 1944, the VA Home Loans program was implemented by the U.S. government to provide veterans wanting to become homeowners with additional support. For over 70 years, the program has helped millions of military families and veterans secure a new home by offering them affordable options for home financing. VA Home Loans are not loans made directly by the government, but are instead made through a private lender with the federal government providing a guaranty.
The VA Home Loan program offers a couple of different benefits if you qualify for one.
There are purchase loans that are available for home buyers, whether it is for purchasing your first home or if you have owned homes in the past. The loan offers zero percent down upon signing, and private mortgage insurance is not required.
With a cash-out refinance loan, as a homeowner, you can take cash from your home equity to help pay for whatever things you need to take care of right now. You can use the loan for things such as doing home improvements, repaying debt, or helping to pay for your children’s school.
The VA Interest Rate Reduction Refinance Loan (IRRRL), which is also referred to as the Streamline Refinance Loan, is the third kind of loan benefit you might qualify for. This loan makes it possible for you to refinance your existing VA home loan in Austin, TX, to change a VA adjustable rate mortgage over to a fixed rate mortgage or to get a lower interest rate.
Additionally, there are specialized programs, such as the Native American Direct Loan (NADL) Program and adapted housing grants, designed for veterans with service-related disabilities. The NADL Program assists Native American veterans with financing a house (for construction, improvement, or purchase) that is on Federal Trust Land.
VA Loans in Austin – How To Find a VA Lender and Get Started
Once you know you qualify for a VA loan, you have a Certificate of Eligibility. You have found a house that is within your budget, and you next need to locate a private lender that will service your loan. It is highly recommended that you research all of the options that are available to you ahead of time, since rates and offers will vary from one lender to the next.
Although the VA (Veterans Affairs) doesn’t require a specific credit score or minimum income, lenders do look at those numbers when reviewing your complete loan profile. For instance, some lenders penalize you for early payments since they affect the future accrued interest.
Other factors that you will want to take into consideration include searching for a VA-approved lender and figuring out which type of loan fits your needs the best (fixed or adjustable rate mortgage, 25 or 15 years, etc.). Next, compare the same kind of loan with each of the VA-approved lenders you talk to to make sure your financial situation is in order so you can select and start the process.
It can be very unnerving to purchase a new home, particularly for first-time home buyers. The VA Home Loans program intends to make the process easier for the honorable women and men who have served our country. So the VA might be able to help you if you served in the reserves or military and would like to buy a house or refinance, as it is their first order of business to address home buying and refinancing, and be of assistance.
Additional Helpful Information
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