Are you a veteran living in any of the counties in Texas? Then here’s your chance to own your dream house. You can benefit from a VA guaranteed loan exclusive for the country’s veterans and servicemen only.
However, since the Department of Veterans Affairs does not make direct loans to veterans, you would need a VA mortgage lender. The VA offers a guaranty while the VA mortgage lenders finance your home loan.
With so many VA mortgage lenders today, you might find yourself looking for a needle in a haystack. While it’s good to have a handful of options, it would be a bit tricky choosing the right VA loan lender you’re looking for.
To help you get started, the following are easy-to-spot signs you are in good hands:
Trusted VA mortgage lenders offer all the VA benefits
First things first, look for the right VA lenders. VA loan lenders should know the benefits and perks of utilizing a VA home loan based on the VA lender’s handbook. Check the following:
- No down payment up to the maximum loan limit which may depend on your area
- Lower average interest loan rates than other loan types
- No prepayment penalties
- VA loans allow borrowers two refinance options. First, a borrower with existing VA loans may opt to lower his monthly payment with a new interest rate. Second, borrowers can refinance their property into the VA loan program.
- No mortgage insurance unlike any FHA or unconventional loans
- VA advocates foreclosure avoidance
- Veteran homebuyers get to enjoy limitations on their closing costs
- VA loans are assumable which means a veteran borrower can have someone else ( a civilian or military) take over his mortgage payment
- Veteran borrowers allow second-tier entitlement
- No commissions, brokerage fees, or “buyer broker” fees may be charged to the Veteran homebuyer
- Lenient credit standards
Check these benefits with your lender and if their staff miss out any of the above, then it’s a red flag! That’s why it is important that the VA lender you are making business with is VA-approved.
Credible VA lenders understand the ins and outs of VA loan process
Your chosen VA lender should know these three issues otherwise it’s time to move on.
Stricter occupancy requirements
After knowing all the benefits of the VA loan program, you must know that VA home loans have stricter occupancy requirements compared to other home loan types. VA homes are intended to be the borrower’s primary residence. However, if the borrower is deployed, the occupancy requirement is met if the home is occupied by the spouse. Dependent children can occupy the house only if there is an occupancy certification made to the VA. If you buy the house, you are expected to move into the home within 60 days. Please note that the VA will not allow the homebuyer buyer to delay the move-in date longer than 12 months.
VA loans on Divorcing Couples
VA loans can be a problem for divorcing couples. And it is best solved if the couple sells the property and then divide the proceeds. In this case, the veteran borrower can restore his VA loan eligibility. Please note that the civilian spouse cannot keep the house. Apparently, it would be a violation of VA occupancy rules.
VA helps delinquent borrowers
You should know that the Department of Veterans Affairs in association with lenders offers a number of options for delinquent VA-backed loan borrowers.
Reliable VA lenders offer the best deals without compromising anything
Since it is the VA lender that sets the interest rate, every eligible borrower should understand that interest rates and closing costs vary from lender to lender.
Get to know the trusted VA lenders in Texas to help you with your VA home loan now!