VA Mortgage Loans
A VA mortgage is the number one choice for veterans, service members, and eligible surviving spouses. This mortgage will finance most property types, including single-family homes, condominiums, townhomes, and multi-family units, as long as you live in one unit as your primary residence.
Even if your credit isn’t the best, the rates are truly amazing.
As with other government loans, you must live in the property as your primary residence. There is an exception to this rule, though. You could refinance your VA loan into another VA loan if you lived in the home as your primary residence in the past, even if it’s a secondary residence or rental property now.
VA Mortgage Limits
In the past, the VA had lending limits that were the same as conforming loans. But that changed in 2020. Now the VA doesn’t limit the loan amount as long as the borrower can financially qualify.
This means that you can take advantage of the low VA interest rates for jumbo loans. Plus, VA guidelines are less stringent than those for larger Jumbo loans.
VA Loan Down Payment
You can get into a VA loan with a zero-down payment. It doesn’t get any better than that. Even though they have the funds to put down 20% or more, many borrowers take advantage of the zero down.
No Private Mortgage Insurance
The VA doesn’t require private mortgage insurance even with a zero down. That’s a massive advantage over FHA loans and conventional loans.
Just like with any mortgage, you’ll need enough income to pay a mortgage payment. The primary way the underwriter checks for your ability to pay is by looking at your Debt-to-Income Ratio (DTI) – That is, the ratio comparing your debt (housing, credit cards, and vehicle loans) to your income. Here’s how it works:
- Your gross income is $5,000 a month.
- Obligations are $2,000 a month and include a $300 truck payment, $1,600 on your new home loan, and $100 on credit cards.
- Divide your $2,000 of debts by your gross monthly income of $5,000. In this example, your DTI is 40%.
- 41% is usually the maximum debt-to-income on a VA loan, but every borrower’s situation is different. Our underwriters go over all of your data to see how to get you the loan you want.
If you receive child support, you may be able to count it in your income. Check with your loan advisor.
VA Loan Alternative
A VA loan is the number one choice for veterans and service members. However, when pricing out your loan, have your loan advisor show you the conventional rates too. That way, you can see which is the best deal for your circumstances.
Homestead is a top lender of VA loans for purchasing and refinancing. Our rates are some of the lowest in the states we serve. Our loan advisors provide excellent service, as you can tell from our reviews. Plus, we close fast!