Buying Your First Virginia Beach or Hampton Roads Home with a VA Loan

filed under: Real Estate posted on October 14th, 2009

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Buying a Virginia Beach or Hampton Roads home can be one of the most stressful, emotionally taxing experiences a family ever endures. But for military families, that’s typically the exception, not the rule.

That’s because those who served have access to one of the nation’s most effective and efficient home loan programs — VA real estate loans. These low-cost loans are one of the last ways home buyers can purchase without putting down a single dollar.

They’re also an exceptional option for first-time home buyers.

Qualified buyers can avoid spending the type of upfront costs that typically come with conventional loans. Some big-time financial benefits include:

VA loans don’t require private monthly mortgage insurance.

Sellers can pay up to 6 percent of all closing costs.

Borrowers can even finance the VA’s funding fee.

The ability to prepay without financial penalty.On top of that, veterans buying their first home can also utilize the Obama administration’s $8,000 tax credit. Since some veterans can purchase a home without spending any money upfront, this tax credit is almost like a paycheck for helping to spur the housing market recovery.The VA has guidelines regarding the condition of homes that can be purchased, so borrowers should make sure that foreclosed properties meet the agency’s strict criteria.

Prospective borrowers must first obtain a Certificate of Eligibility (COE) verifying their military service. Those who may qualify for a VA loan are:

Military members who’ve served 181 days on active duty or three months during war time may be eligible.
People who have spent at least a half-dozen years in the National Guard or Reserves.
Spouses of those killed in the line of duty.

Not everyone who qualifies will ultimately get a VA loan. The program has not income or credit restrictions, but lenders will examine an applicant’s credit and financial history. But in most cases, those requirements are typically looser than with most conventional loans. Prospective borrowers will likely need a credit score of at least 620.

The VA guarantees all home loans up to a specific amount. Today, in most parts of the nation the VA loan limit is $417,000. Those limits are higher in some of the country’s more expensive communities. The VA also offers excellent rates on jumbo loans.

VA loans have helped more than 18 million veterans become homeowners since World War II. They were designed expressly to help those who have served achieve the dream of home ownership.

Given their significant financial benefits and flexibility, they’re a great tool for first-time buyers and their families.

This guest post was written by Brandon Laughridge of Mortgage Loan Place. MLP specializes in educating consumers about government loans, namely the FHA loan program and the VA loan program. Learn more about mortgages at MLP’s main site.

posted by Dennis Blackmore

This entry was posted on Wednesday, October 14th, 2009 at 10:14 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.