If you are active or retired military interested in purchasing a home, you should definitely look into different types of VA loans. Since the 2008 downturn, lenders have tightened qualifications and eliminated certain types of loans. Those eliminated include the no-down payment loan. However, if you opt for a VA loan, you can get this type of loan, as long as you have a qualifying income level and good enough credit. Another great benefit with VA loans is that the closing costs are limited. Sometimes the seller will even pay them. You do have to have earnest money, which is typically put down after the contract is signed to purchase a house.
Choose the Right VA Loan for Your Plans
Once you’ve decided to go with a VA loan, the next thing to think about is the structure of the loan. You can get several types of VA loans. The first is the fixed-rate mortgage. This is a good one if you need to be able to depend on your monthly payment staying the same. An adjustable-rate mortgage might be a good idea if you are not planning on staying in the home for too long. Keep in mind that the interest can go up as much as one percentage point a year, and only five points over the life of the loan. Jumbo loans are available for homes that cost more than $417,000, which is the maximum the VA will finance with no down payment. The way these work is that the VA will finance the first $417,000 for no money down, then the purchaser would put 25% down on the amount of the loan over $417,000. This is a great way to finance the purchase of a large luxury home.
Please get in touch with our office to discuss the type of VA loan that’s right for your home-buying plans. We have many years of experience in the San Antonio market and with helping military home buyers find the home of their dreams.