Veterans Loans for Real Estate Purchases in Virginia Beach | Virginia Beach Real Estate News For Buyers And Sellers

Veterans Loans (VA) for Real Estate Purchases in Virginia Beach

filed under: Buyers posted on January 7th, 2010

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The Virginia Beach, Norfolk, and Hampton Roads area has a long, proud military history and much of the real estate owned by our service members was acquired with a Veterans Loan.

Norfolk Naval Base is home to NATO’s defense headquarters, and the base itself is the world’s largest which brings many real estate buyers to Virginia Beach, Norfolk, Chesapeake, and Hampton Roads.

Thousands of military members and their families have purchased real estate with a veterans loan, and spend time in Virginia Beach and the region. Some buy real estate and stay for just a few years, while others decide to make a permanent home in the Virginia Beach and Norfolk area.

When it comes to buying real estate in Virginia Beach and the area, both active duty and retired military members can capitalize on one of the most powerful and low-cost real estate lending programs on the market — VA loans.

These dynamic loans are backed by the Department of Veterans Affairs. The governmental guarantee helps lead to excellent loan rates and terms for qualified Virginia Beach and Hampton Roads borrowers. The VA currently guarantees about 13,700 home loans in Virginia, Virginia Beach, and Hampton Roads with a total value near $4 billion.

VA loans are also one of the last ways borrowers can buy real estate without putting down any money. Qualified VA borrowers can purchase a home worth up to $417,000 (and even more in costlier parts of the country) without the need for a down payment.

Other benefits of VA loans include:
-No private monthly mortgage insurance
-No penalties for loan pre-payment
-Higher debt-to-income ratio allowed than for most conventional loans
-Sellers can pay up to 6 percent of closing costs and concessions

For many veterans, VA loans are easier to obtain than conventional loans. Studies show that about 80 percent of VA borrowers couldn’t have qualified for a conventional loan.

The VA Loan Guaranty Program doesn’t have credit or income requirements. But remember that the VA does not issue loans — it guarantees them. VA-approved lenders will examine credit and income and typically look for a credit score of at least 620.

To be considered eligible for a VA loan, applicants must be:
-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

Those who meet the criteria must file a Certificate of Eligibility (COE) with the VA. This formal document, which basically certifies your ability to participate in the program, is available online or through a VA broker.

Be sure and read the buyer’s guide to help you through the real estate home process.

posted by Dennis Blackmore

This entry was posted on Thursday, January 7th, 2010 at 1:14 pm and is filed under Buyers. 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.