VA Home Loans Texas

Before buying a new home, you must check all your financial options to ensure the process goes as smoothly as possible. If you are in the military or a veteran wanting to purchase a home in Texas, one of your top financing options is the VA Home Loan.

What Is The Texas VA Home Loan?

One of the best things about military service is access to  VA loans. These loans offered by the Department of Veterans Affairs are available to veterans and active-duty members of the armed forces.

Like most government mortgage programs, VA loans are guaranteed by the Department of Veterans Affairs. It would help if you find a licensed private mortgage lender to finance the loan.

If you’re looking for a VA mortgage lender in Texas, Capital Home Mortgage is your best bet! Get in touch with us to learn more about what we offer!

VA Loan Eligibility And Requirements

To qualify for a VA loan, borrowers must meet basic eligibility requirements from the Department of Veteran Affairs and their chosen mortgage lender. The VA loan eligibility in Texas is almost the same as in any other state. Service members who wish to apply for a VA loan must have served for:

• At least 81 days in peacetime.
• At least 91 days of active duty during a war.
• At least six years in the Reserves or National Guards.

Moreover, a military spouse may qualify for a VA loan if:

• The service member died due to military-related causes.
• The service member had been missing in action or became a prisoner of war for at least 90 days.
• The surviving spouse has not gotten remarried

1 – Income Requirements

VA home loans have more lenient income requirements compared to most loans. You have a high chance of qualifying for a VA loan if you can afford to pay a mortgage with your current income. Plus, if you have a low debt-to-income ratio, you’ll be able to get a larger mortgage.

The maximum VA loan amount is $647,200, but you may apply for a VA Jumbo loan should you require an enormous sum.

2 – Credit Score Requirements

Technically, VA loans do not have credit score requirements, but most mortgage lenders do. Still, your credit score to qualify for a VA loan is significantly lower than other loans — usually below the 600 range. This is mainly due to the guarantee provided by the government that protects lenders against defaults.

3 – Bankruptcy

VA loans make allowances for applicants who have filed for Chapter 7 bankruptcy. According to the rules, lenders can disregard a bankruptcy that has been discharged for two years or more, while lenders to are authorized to decide on bankruptcies discharged for less than 2 years. In case of a Chapter 13 bankruptcy, the borrower must demonstrate twelve months of continuous payment.

VA Loan Benefits

VA loans are attractive because they are offered with 100% financing. And though this does not necessarily mean that you don’t have to pay for anything during the closing, plenty of down payment assistance programs help you cover the bulk of the closing costs with as little out-of-pocket expense as possible.

Some of the most notable features of VA Home Loans include:

• No down payment;
• No mortgage insurance premiums;
• No prepayment penalties;
• Seller may pay for up to 4% of the closing costs;
• A one-time non-refundable variable funding fee is waived for disabled veterans and surviving spouses.

Is VA Loan Worth It?

Whether a VA loan is the right home loan depends on your circumstances. However, for the majority of veterans and eligible service members, it does have the most favorable financing terms.

Furthermore, when working with an experienced mortgage company like Capital Home Mortgage, you can access top-notch service and the most competitive mortgage rates.

Want to learn more about our VA loan programs? Contact us right away!