If you are looking for a home in Austin, you can buy the perfect one for your family with VA loans in Austin, TX. Of course, as with other loan types, there are requirements to meet to qualify.
In this post, we are sharing some facts about VA loans in Austin, TX, so that you can assess your qualifications or take action to increase your chances of qualifying for the said loan.
Consider the following:
Who can apply? Veterans, active service members, and eligible spouses can apply for VA loans.
Who offers VA home loans in Austin? Private lenders provide VA home loans. However, they are backed by Veterans Affairs. It enables the former to give more favorable terms for the borrowers – like lower interest rates and no down payment.
What are the eligibility requirements? You may be eligible for a VA loan in Austin if:
- You are a service member on active duty or a veteran
- You are a qualified spouse of a deceased service member
- You meet your lender’s credit and income requirements
What are the advantages of VA loans? Lenders do not require a down payment for VA loans. They also have no borrowing limit, but Veterans Affairs will only back 25% of your loan. Furthermore, it is worth noting that VA loans do not require you to purchase private mortgage insurance. On top of that, you do not need to worry about credit score requirements.
What is this they call a funding fee? While VA loans do not require private mortgage insurance, you pay a funding fee. The VA funding fee is a one-time payment that helps lower the loan cost for U.S. taxpayers since down payments are not required.
Can you expect stricter rules? Yes. For one, you cannot use a VA loan in Austin, TX, to buy investment properties. For another, lenders must approve all prospective homes.
Online looking for a reputable mortgage company to help get your dream home with VA loans in Austin, TX? Contact HomePlus Mortgage today.
