If you are a military veteran, you may find Arizona an ideal place to live. With over 300 days of sunny and a host of attractions such as the Grand Canyon, national parks, and national monuments all over the state, Arizona is indeed a place where you can enjoy settling down. With 530,000 veterans living in this place alone, Arizona presents other opportunities for veterans to build a home. With a VA loan packaged with no down payment and low closing costs, people who have seen military service will have an excellent opportunity to build a dream home in this state. In this article, we will be discussing the term limits of VA loans, how VA loans work, and how to get a VA home loan and enjoy its benefits.
Aside from providing information about limits on VA loans in Arizona, we also advise how to get construction loans Az and learn more about the jumbo loan limit Arizona has on offer. Learn more from the most dependable experts on Jumbo Loans Arizona has available.
What is a VA Loan?
A VA loan is a form of loan made by private mortgage companies guaranteed by the Department of Veterans Affairs. Some private lenders are licensed in Arizona to provide you with a VA loan as long as you can qualify for a VA entitlement. With an average listing price of around $600,000 for a home in Arizona, a VA home loan program provides military service personnel in active service or veterans with an advantage in getting a new home quickly.
What are the Arizona VA Loan Limits?
The maximum loan amount with no down payment prescribed by Ginnie Mae for the entire state is $647,200.
If you have a full VA loan entitlement, you are not restricted by VA loan limits. If veterans don’t have their full VA loan entitlement, they are bound by the Arizona VA loan limit of $647,200. That means you can take out a larger mortgage without a down payment from a lender.
What is the VA Loan Benefits?
VA loans have no down payment.
VA loans have lower average interest rates.
VA loans don’t have mortgage insurance premiums.
VA loans have low closing costs.
A VA loan doesn’t have prepayment penalty.
For qualified individuals, a VA loan has a variety of refinancing and purchase options available.
Best of all, a VA loan is reusable for veterans with entitlement remaining.
Does a VA Home Loan Gave Credit & Income Requirements?
In theory, there is no minimum credit score set by the Veterans Affairs. However, it is up to the lender to set their own minimum credit score requirements to extend the VA home loan. Typically, lenders will set the minimum credit score requirement between 580 and 620.
As for income, the lender will calculate your gross monthly income based on the current documentation you present, such as:
Your most recent payslips/paystubs
Your tax returns from the last two years. If you are self-employed, you will need to present a year-to-date profit and loss statement.
Income statements coming from rental property, commission income, side business, and others can be helpful.
Your most recent Leave and Earnings Statement
Most lenders will calculate your debt-to-income ratio based on your current expenses. The benchmark debt to income ratio is 41% for most lenders.
If you have a debt to income ratio of less than 41%, you can still avail of a VA home loan if you have other compensating factors such as extra money in reserve, good credit, and cash available for a down payment.
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:
You have 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 service member 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.
Key Takeaways: Let ValorMortgage Help You With Your VA Home Loan
Getting an Arizona VA loan has rules laid out to enable our veterans and military service personnel on active duty to quickly build a home with minimal to no down payment. ValorMortgage has the experience, tools, and expertise to help eligible applicants take out the VA home loan. Suppose you are like most people who find getting mortgage financing confusing and complicated. In that case, we will guide you through managing your existing mortgage or an Arizona VA home loan or help you qualify for the best home loan and mortgage package available for you. We can also guide you through other available options, such as VA construction loans and other opportunities to supplement your VA mortgage to ensure you won’t make payments difficult in the long run. For more details, you can call us at (480) 773-2686 or email us at firstname.lastname@example.org to learn more about the opportunities you have available to make your dream home a reality in Arizona.