If you are a member of the US Military service personnel, veterans, and their spouse, then a VA loan is a mortgage type available. You can use VA loans to refinance an existing mortgage or serve as a loan for a new home if you qualify for a VA loan, specific necessary military service requirements.
Aside from the information on Arizona VA home loans and the need to refinance your mortgage, we also share topics ranging from how Arizona home mortgage rates and how to apply for FHA loans in Arizona. Especially if you are a veteran or active military personnel, you can find our articles to learn about VA loan rates and make the most of it.
What are VA Loan Benefits
Thanks to VA loans and the Department of Veterans Affairs, people who have seen military service and their spouses can avail of a substantial number of benefits. The benefits of a VA home loan include the following:
No down payment: Unlike other home loans, VA loans require no down payment!
Low-interest rates: Thanks to the Department of Veterans Affairs, and the backing of the US Government, there is a lower risk to lenders. This support enables lenders to offer lower interest rates than any other home loan.
Credit Score Requirements are Lower: Conventional or Conforming home loans require at least a credit score in the high 600s or the lower 700s. Borrowers can qualify for an Arizona VA loan at lower credit scores to meet the other requirements.
VA Loans Doesn’t Require a Private Mortgage Insurance: Most other home loans require private mortgage insurance that must be included in the closing costs or as part of the monthly payment. Because of the lack of insurance and down payment, a VA loan can present an opportunity to save in the long run.
Capped Closing Costs: One issue that pains most homeowners are high closing costs. The VA loans limit how much borrowers can pay in closing costs.
There are No VA Loan Limits: Although VA guaranteed loans don’t have a maximum loan amount limit, a lender who sells on their VA loans in the secondary home market must follow the following VA loan limits to the maximum loan amount as prescribed by Ginnie Mae. Arizona VA loan limits are $548,250 in the secondary market for most of the state.
Who Are Eligible for a VA Loan?
You may be eligible for a VA loan if you meet at least, one of the requirements below:
Having served 181 days of active duty during peacetime.
You served for 90 consecutive days of active service during wartime.
You are the spouse of a military personnel who has a service-connected disability or died while in the line of duty.
For full details of eligibility requirements, guidelines for eligible veterans, national guard personnel, or to learn more about VA eligibility, detailed information is available on the VA website.
How Does a VA Home Loan Program Work?
The first step is to determine your VA eligibility. Private lenders are the financial institutions that lend the cash for an Arizona VA loan. What happens is that the Department of Veterans Affairs backs each VA loan enabling qualified homebuyers with benefits like no down payment and others that are not found in other home mortgages.
Get Your Certificate of Eligibility from your VA: You may get your Certificate of Eligibility from the VA. Your chosen lender can help you get this certificate using your DD-214 form.
Check Your Financial Standing: Though the credit score requirements are much lower for VA loans than for other mortgages, most lenders will require a credit score of 620 or higher. Your debt-to-income ratio should also be 41% or lower.
Check Your VA Entitlement: An Arizona VA home loan also limits how much the VA will ensure your lender. This amount covered by the VA is called the VA entitlement.
Get Yourself Preapproved: This process means you will get initial approval for your loan application. You will submit the requirements such as your financial standing, home purchase, and your credit score. Based on this information, your lender will assess your eligibility to determine how much your VA loan amount will be.
Submit Your Offer to Your Seller: You will submit your offer to your seller once you find the home you wish to purchase. You will need to include your VA preapproval letter to tell your seller that you are qualified to buy the property.
Your Lender Will Do The Rest: Your lender will do the legwork from your home appraisal to underwriting your loan from this point onwards. Specialists in financial institutions will be checking the information to verify if you can repay the loan.
Close Your Mortgage: You will need to attend a closing meeting appointment to sign the paperwork and get the keys to your new home once your VA loan is approved. If you need to pay your closing costs or any down payment, then this is the time you will be doing so.
Takeaways: Call Us If You Want To Prequalify
For our veterans, National Guardsmen, and active-duty military personnel, we at Valor Mortgage believe that you need to be given the best opportunity to purchase a home quickly. Whether you need VA construction loans, a VA home loan, or a refinance loan that already exists, we can help you learn how you can eventually get the VA mortgage amount you require. You may need to ask if you can make your VA loans work as a cash-out refinance option for your existing loan. If you qualify for more VA entitlements, you may need to know how many VA loans you can be eligible for. Call us at (480)%20773-2686 to learn more. You can also set an appointment if you qualify for a preferred loan program or a down payment assistance program if you have a minimum credit score from any banks within the equal housing lender coverage. If you want a helpful tool to be a perfect mortgage calculator that fits the types of loans you qualify for, then visit this link: Contact Valor Mortgage | Home Refinance | Valor Mortgage Lending (valormortgageaz.com).