The U.S. Department of Veterans Affairs has helped countless veterans finance their home ownership goals. While you have the choice of a conventional loan offered by other mortgage lenders, there are some significant benefits to VA loans. Here are some of the most important advantages to consider:
The most famous benefit of VA loans is the lack of down payments. Homebuyers taking out a conventional loan typically need to pay around 3% of the home's purchase price up front as part of their loan terms. Even a small percentage can mean tens of thousands of dollars out of pocket. A VA loan will help you save this money instead of potentially draining your hard-earned savings.
Private mortgage insurance is required by lenders to protect them against the chance of you defaulting on your loan. Not only do these insurance policies have hefty upfront charges, the ongoing annual cost can last the entire life of your loan. Luckily, with VA loans, there is no requirement for private mortgage insurance, saving you money and time.
Mortgage lenders conduct a careful analysis of your financial profile when you apply for a loan. For most lenders, credit score requirements can be especially strict. Even if you qualify for a loan, a lower credit score might mean higher interest rates or private mortgage insurance premiums. VA loans don't have a credit score requirement, so no matter what state your credit is in, you can still be approved for a loan.
The same goes for debt-to income ratios. While VA lenders still consider DTI ratios in the approval process, the requirements are much more flexible and forgiving. Even with a high debt-to-income ratio, you can be approved for a VA home loan with other financial factors like credit score working in your favor.
These are only a few of the major benefits offered by VA home loans. Remember these factors if you're deciding between a VA or conventional loan so you can make the best decision for your situation.
Welcome to my website www.lindamichaudhomes.com.
I can work for you in Hampshire and Franklin counties. Whether you are buying or selling, I will help you achieve your goals.
Community and school information for Amherst MA, Hadley MA, South Hadley MA, Hampshire and surrounding towns. You can also find the latest town and Real Estate News, up to the minute listings alerts of New Listings, Price Changes, Back on Markets, Open Houses, Virtual Tours, and much more information about Amherst MA Real Estate, Hadley MA Real Estate, South Hadley MA Real Estate, Hampshire County Real Estate and surrounding towns from my blog.
The Hampshire area schools are fantastic. Some links you may want to check out follow are below. As always, please contact me directly to help you answer questions about local schools.
www.arps.org - This site will also take you to the Leverett, Shutesbury, and Pelham schools
www.hadleyschools.org
www.nps.northampton.ma.us
www.ses.sunderland.ma.us/
www.deerfield.edu/
www.southhadleyschools.org/
