Five key facts about VA loans you probably didn't know
- Posted: January 15, 2020
- By: Nations Lending
Veteran Affairs loans, or VA loans, are designed specifically for Veterans and members of the military. With less stringent borrower requirements and a number of benefits, they have allowed many veterans and service men and women to become homeowners.
The process for a VA loan is different for a conventional loan, so it’s important to know all the facts before deciding if this loan is right for you. If you’re considering a VA loan, here are five facts about the VA loan program you probably didn’t know.
1. You still need to qualify
Meeting the eligibility requirements for a VA loan is just the start. After that, you still need to qualify for the loan by passing credit and income requirements. Luckily, credit requirements for VA loans are not as strict as other types of loans. As a general rule, most lenders will require a credit score of at least 620, but at Nations Lending, veterans with credit scores as low as 580 can qualify, if other conditions are met.
2. You don’t have to pay mortgage insurance on a VA loan
While you can still purchase a home with little money down, most mortgages require PMI (private mortgage insurance) when putting less than 20 percent down. This can be hundreds of dollars extra a month. With a VA loan, however, these monthly premiums are not required.
3. You can still get a VA loan while serving overseas
Military members serving overseas can grant power of attorney (POA) to a spouse or someone else to sign loan documentation for them. There is a 60-day occupancy rule, but only a spouse can satisfy that. Otherwise, an extension of up to 12 months is granted to the borrower.
4. VA loans take about as long to close as conventional loans
It’s a common myth that closing a VA loan can drag on for months. However, the national average length of time it takes to close a conventional loan is 38.9 days, compared to 39.6 for a VA loan. At Nations Lending, we can often close them even faster.
5. Not all lenders offer VA loans
It’s important to find a lender that will finance a VA loan. Nations Lending is one lender that has extensive experience helping veterans and members of the military obtain a VA loan.
If you’re a former or current member of the military, a VA loan can be the ticket to the home of your dreams. If you’re ready to get started, or you just want more information, contact a Nations Lending personal mortgage advisor by calling toll-free today at 1-877-816-1220.