If you are looking for a VA loan in Austin Texas, you are in the right spot.
If you or a member of your family is look to purchase a new home and you or a relative served in the military, a VA loan can help to dramatically reduce the pressures that come with traditional mortgages.
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 signers don’t get:
Easier to Qualify Competitive Interest Rates No PMI 0% Down at Signing
There are not many loan programs remaining that offer zero-down to recipients at signing. Veterans and members of their families that qualify for VA Home Loans are one of the few that still can 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. Other benefits associated with the U.S. government guaranteeing your loan include easier qualification requirements and more competitive interest rates.
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.
Although 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 for covering monthly expenses. That just means that borrowers are required by the VA to have an adequate income after their major monthly expenses 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 are able to keep up with their monthly mortgage payments.
The VA will ultimately will determine who is eligible for their loan program, however military personnel, veterans, and their families all can check what the basic service requirements are to be eligible.
- Served for over 6 years in the Reserves or National Guard During peacetime served 181 days of active service During wartime you served for 90 consecutive days of active service
- Were married to a service member who died while in the line of duty
- Are a spouse consult with a VA Loan Specialist to see if you qualify for a VA Home Loan.
Certificate of Eligibility (COE)
After you have learned that you qualify for a VA loans 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.
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 programs has assisted millions of military families and veterans with getting a new house by providing them with affordable options for home financing. VA Home Loans are not loans made directly by the government, but are instead are through a private lender with the federal government providing a guaranty.
A couple of different benefits are offered by the VA Home Loan program if you qualify for one.
There are purchase loans that are available for home buyers, whether it is for purchasing your first home or you have owned homes in the past. The loan offers zero-percent down upon signing and private mortgage insurance is not required. The VA Purchase Home Loan is a great option for prospective homeowners where having access to competitive interest rates is a top priority.
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 to do home improvements, repay debt or help 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.
In addition, there are some specialized programs such as the Native American Direct Loan (NADL) Program and adapted housing grants that are for veterans who have 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.
How To Find A VA Lender And Get Started
Once you know you qualify for a VA loan, and have a Certificate of Eligibility, and you found a house that is within your budget, you next need to locate a private lender that will service your loan. It is highly recommended that you do research on 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 doesn’t require a specific credit score or minimum income, lenders do look at those numbers when reviewing your complete loan profile. Also, most lenders will require you to have at least a 640 credit score. Depending on what your finances are, various lenders might offer you worse or better interest rates. Of course you will to find the best loan for you. Make sure to also ask about what other fees you might incur. 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 type of loan with each of the VA-approved lenders you talk to.
It can be very unnerving to purchase a new home, particularly for first-time home buyers. The intention of the VA Home Loans program is 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.
Directions to VA Loan Academy in Austin TX
Use the map below to either swing by or make an appointment with our office in Austin.
Additional Helpful Information
Local communities we service in the Austin, TX area:
Austin, Bee Cave, Briarcliff, Buda, Cedar Creek, Cedar Park, Creedmoor, Dale, Del Valle, Driftwood, Kyle, Lago Vista, Lakeway, Leander, Manchaca, Manor, McNeil, Pflugerville, Red Rock, Round Rock, Spicewood, Sunset Valley, West Lake Hills
Bastrop County, Caldwell County, Hays County, Travis County, Williamson County
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