Veterans are Flocking to Las Vegas: What You Need to Know about VA Home Loans
Las Vegas is one of the country’s best areas to live, with numerous entertainment, dining, and outdoor adventure locations within easy reach. As a result, many of the brave men and women that have served our nation are choosing to relocate to the area permanently once they are out of the service. If you’re a military member or family and you’re wondering what you need to know about VA home loans, here’s a quick primer.
What is a VA home loan?
In 1944, the Department of Veterans’ Affairs created a home loan program that helps service members and veterans achieve their dreams of home ownership. Since the program was created, millions of service members and their families have taken advantage of this important benefit. Contrary to popular belief, the VA doesn’t offer home loans directly. Instead, they guarantee up to a quarter of the amount borrowed in the case that the home buyer defaults. This has created a network of VA approved lenders that offer low interest rates and some of the most competitive borrowing terms on the market today.
What are the benefits of a VA loan?
The VA home loan program offers veterans a number of benefits. These include the ability to finance up to 100% of the purchase price; in other words, to buy a home without requiring any down payment. VA loans come with less strict underwriting requirements; it’s been estimated that 80% of VA loan recipients wouldn’t qualify for a traditional loan. VA loans don’t carry prepayment penalties, don’t require that members pay Private Mortgage Insurance (PMI) which can add hundreds per month to payments, and they streamline the refinancing process. As a result, many veterans find that they’re able to buy homes they would otherwise never have been able to afford.
How to get started with a VA loan?
The first step is determining if you’re eligible for a VA loan. Service members, veterans and surviving spouses of deceased military personnel may be eligible. A number of factors, including length of service and discharge status, play an important role. The next step is obtaining a certificate of eligibility (which is called a COE by the Department of Veterans’ Affairs). More details on how to apply are available at the VA website. Once you’ve obtained your COE, you’re ready to begin the process and can work with a lender of your choice.
Are you a veteran or service member that’s purchasing a home in Las Vegas and needs help navigating the mortgage process? Contact Sydnee Johnson to arrange for a personalized consultation today.