Veterans are provided a variety of financing options, each equipped with their own characteristics today. For those who are active duty, the Home Loan Expert recommends opting for the federally-supported VA Loan due to its distinct advantages and affordability when compared to conventional loan options today.
VA Loans: These loans are available exclusively to those who have served our country, as well as select military spouses who qualify for the loan. Originating in 1944 with the Servicemen’s Readjustment Act, VA Loans are known for the competitive rates and no down payment requirement. Additionally, they don’t require the same kinds of strict credit scores as other loan options. These loans are available to all who meet the base service requirements, which can be located here:
If you’re curious about other home loan options aside from VA Loans, here are your top choices:
- USDA Loans – Administered by the U.S. Department of Agriculture for citizens, including the subgroup of veterans, these loans are designed for individuals with lower incomes to purchase homes and land specifically in rural areas. To qualify, the property must reside in a pre-identified zone by the Department. If you’re wondering if a USDA Loan is right for you, please give us a call to discuss the pros and cons.
- FHA Loans – Known as the Federal Housing Administration, this loan can be used by a variety ofcitizens, including veterans, for purchasing homes that are classified as “fixe ruppers.” There are also certain types of FHA loans that are available specifically for senior citizens, first-time home-buyers, as well as those looking to purchase homes and make them energy efficient for a “green market” today. Contrary to the VA Loan benefits, a FHA loan does not offer the no-down payment mortgage option. One of our loan officers can help you decide if this loan makes sense for your situation.
- Conventional Loans – These are the toughest loan options of all, as they come without any government support or guarantee. They require down payments, excellent credit, and may carry private mortgage insurance. Please talk with one of our VA Specialists about whether this option makes sense for you are not.
- Jumbo Loans – Also known as a “Jumbo Mortgage,” Jumbo Loans are a type of home financing for those whose loans exceed the limits established by The Federal Housing Finance Agency. Different from regular mortgages, a Jumbo Loan comes with more stringent requirements, carrying its own tax implications. They have been growing in popularity since the market crash 10-years ago.