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Are you worried about VA loans in Houston? What should you keep in mind? Let’s read this article!
For many veterans and military service members, the VA loan program seems just perfect. The VA loan does not need you to make a large down payment. Needless to say, this is an exception in the mortgage industry. Instead of making a large down payment, you can make the best out of the loan.
The best VA loans for bad credit in Houston are flexible. For example, you do not need to pay the VA funding fee in cash. There are a lot of things you must know about the VA loan programs. So, let’s explore!
Zero Private Mortgage Insurance
Making a large down payment is difficult enough for FHA and conventional buyers. Moreover, they are always onto loan insurance if they fail to make a large down payment. Usually, a 20% down payment of the loan value is defined by a sizable amount. This means a $200,000-mortgage might cost $40,000.
FHA loan programs also have annual and upfront mortgage insurance premiums — the former sticks to the life of your loan. Conventional loans also have to pay a sizable amount for monthly costs till they create equity. However, VA loans do not require mortgage insurance. VA loan programs do add a compulsory funding fee that is directly a part of the Department of Veterans Affairs. Buyers with a service-connected disability do not require paying the fee.
Easy to Qualify for VA Loan Programs
VA loan programs need documentation, decent credit score, adequate income, and stable employment. If you compare other loan programs, VA loans seem a lot more flexible. This is only possible due to the VA loan guarantee. The Department of Veterans Affairs intends to ease the process for active-duty military service members and veterans.
Furthermore, there is a wide variety of VA loans. You can apply for an adjustable-rate loan and fixed-rate loan. You can make use of a VA loan for a manufactured home, duplex, new-built home, condo, and single-family residence. You can use the loan program for making your house more energy-efficient, repairs and improvements, and refinancing the existing home loan. In case you are having trouble finding an ideal mortgage, you should have a chat with a VA-approved lender in Houston.
If you are looking for affordable rates, the VA loan makes a lot of sense. So, look out for VA-approved lenders in Houston.