THE MAJOR BENEFITS
VA Loan are some of the best loans on the market for many reasons one of which is Relaxed Credit-Qualifying Standards.
Although the VA has no minimum credit score requirement, lenders often require scores of at least 580. A few lenders will approve loans with credit scores as low as 500 if the veteran meets the VA residual income requirement. The VA takes a real-life view of affordability by estimating the ability to pay the home loan after accounting for other monthly expenses, including utilities and child care.
- Down payments aren’t required unless the purchase price is more than the appraised value of the property or it’s higher than the local VA loan limit. Most counties are $484,350 with some being higher.
- Mortgage rates are typically lower than rates on conventional loans.
- No mortgage insurance is required.
- You can reuse your VA loan benefit and have more than one VA loan at a time. It cannot however be used for investment purposes.
- VA loans limit the amount you can be charged for closing costs.
- VA loans don’t require you to be a first-time home buyer.
- VA-backed loans can be assumable — this means they can be taken over by someone you sell the house to, even if that person isn’t a service member. This is tricky, so reach out to us before you do this.
- A bankruptcy discharged more than two years ago — and in some cases, within one to two years — will not preclude you from getting a VA loan.
- You can refinance up to 100% of the homes value in Utah on a VA loan.
- Plus many, many more