HomeBridge has branches across the country, and while each area we serve has its own unique needs, the one common topic we often see is the difficulty some home buyers have with saving for a down payment.
The average price of a home in the U.S. fluctuates greatly based on its location. In some of the most popular states to live, such as California, New York and Colorado, homes can cost well over $500,000 or more.
Regardless of the price of the home, saving the typical down payment of 20 percent is no easy feat for most potential home buyers.
For the millions of men and women in our nation’s military, including veterans, reservists and their families, VA loans could be the answer to their home buying dreams.
What Exactly Are VA Mortgages?
VA Mortgages are a type of residential mortgage insured by the Department of Veterans Affairs (VA), versus other loan products you may have heard of, such as the FHA loans, which are guaranteed by the Federal Housing Administration.
VA Mortgages are only available to qualified active military personnel, reservists, veterans and their spouses. The mortgages can be used to purchase an existing home or finance the cost of new home’s construction.
Despite their name, the U.S. Department of Veterans Affairs does not actually provide VA Mortgages to the borrower. Instead, home buyers need to work with a VA approved third-party lender, such as HomeBridge.
Why VA Mortgages Are a Smart Choice
The obvious benefit of a VA Mortgage is the lack of down payment required. Simply put, saving the 20 percent some other loan types require is a difficult task for many borrowers. Even if you have a 20 percent down payment saved for a mortgage, your financial planner may recommend you use it for other investments or put it towards home renovations that may improve resale value later on.
Another advantage these loans provide is that is that unlike FHA loans and some other types of mortgage products, VA loans do not require private mortgage insurance when the minimum down payment is not met.
If You Were In The Military, Will You Automatically Receive a VA Loan?
While most members of the military, veterans, reservists and National Guard members are eligible to apply for a VA loan, not all will qualify. There are prerequisites based on the amount of time you served and when you served that need to be taken into account. Also, VA loans are not ‘free money’ and borrowers will still need to show that they have sufficient income to repay the mortgage.
If you’d like to discuss how to secure your VA loan, local trends in real estate or anything else related to the area housing market, contact a mortgage loan originator in a branch near you for a consultation. There is no obligation to work with HomeBridge or any other mortgage lender after the initial meeting, but speaking with a professional will give you a sense of what your options are and the steps you will need to take to move forward. If there isn’t a branch near you, contact our National Lending Center and they’ll be able to assist you over the phone or online.