Abilene VA Home Loans

Those who work and have worked for the U.S. military may have the privilege of qualifying for a VA home loan backed by the U.S. Department of Veterans Affairs. Compared to a conventional loan, a VA home loan offers plenty of great benefits to the borrower, including a zero-down payment requirement.

5 Factors to Consider Before Applying for a VA Loan

It’s important to note that the government only guarantees VA loans. You will still have to look for a private mortgage lender to originate the mortgage. That said, there are a few things you need to consider before you apply for a VA home loan.

     1. Eligibility

The VA loan is available to retired and active military service members who meet the following VA eligibility requirements:

• Served a minimum of 90 consecutive days during wartime
• Served a minimum of 181 days during peacetime
• Served a minimum of  6 years in the National Guard or National Reserves

Moreover, the spouse of a service member who died on duty or was disabled while serving may also qualify for a VA loan.

     2. Lender Qualifications

Aside from the VA’s eligibility requirements, it would be best if you also met lender qualifications. The requirements can vary depending on the mortgage company you choose to work with, but most lenders look for a credit score of at least 600. You must also present a Certificate of Eligibility (COE), which verifies your eligibility for VA loan benefits.

     3. Budget

While VA loans require no down payment 90% of the time, you will need to cover the closing costs of your mortgage, which typically include the following expenses:

• Title insurance
• Appraisal fee
• Loan origination fee
• Credit report fee
• VA funding fee
• Homeowners Insurance
• Recording fee
• Real estate taxes

The closing costs can add up to about 2%-6% of the total loan value, but there are programs to help you cover the bulk of the expense. 

     4. Interest Rates

VA loan rates are very competitive―typically 0.5% lower than conventional prime loans. Moreover, the loan fees are limited to what the VA will allow. You have significant long-term savings when you put together great rates, low fees, and a zero down payment. 

     5. Other Notable Features of VA Loans

The following features of the VA loan make it an even more attractive option to qualified borrowers:

• No mortgage insurance premiums
• No prepayment penalties
• Seller may pay up to 4% of the loan value in closing costs
• Waived non-refundable variable funding fee for disabled veterans and surviving spouses

Trusted VA Loan Lender in Abilene

VA home loans offer the most advantageous financing terms for most veterans and eligible service members. Plus, when you work with a seasoned VA mortgage lender like Capital Home Mortgage, you’ll have access to first-rate service and the best interest rates in the market!

At Capital Home Mortgage, our goal is to make the homeownership journey an enjoyable experience for our customers. We’ll go above and beyond to make the home-buying process as easy as possible for you.