Are you a young VA loan borrower? Confused about the mortgage? Read the article now!
Did you know the number of VA loans has increased in recent years? The Millennial-generation seems to be one of the vital factors behind this increase. Borrowers who are between 23 and 38 are most likely to choose the VA home loan. The housing market has been watching a question making rounds – when are the millennials going to purchase a house?
It seems the time has arrived! They are now ahead of thousands of civilians. Also, a VA loan seems to be a lucrative choice for not having to save for down payments. That’s why the VA home loan bad credit in Houston is now also a popular choice among the young buyers who are in the military.
The mortgage program has significantly a low delinquency rate and provides greater benefits than FHA loans. Zero down payment is definitely a positive side, and there is no mortgage insurance, either. VA loan is the first step to acquire the house of your dreams. But would you not like to learn more about the mortgage program? Let’s go through the necessary facts about VA home loans in Houston.
Zero mortgage insurance costs
If you were to apply for FHA loans, you would have picked a 3.5% down payment. The low down payment invites FHA mortgage insurance. On the other hand, the VA loans do not have a down payment. Hence, there is no type of private mortgage insurance added. You need not pay for monthly mortgage payment when shopping for a VA home loan.
In case you bagged any other mortgage and put down 20% of the loan value, the mortgage insurance premium would be low. Potential military service members need not essentially put down any percentage of the home value. In this way, they can save a hundred dollars on the monthly mortgage payments.
Veterans with a history of bankruptcy
Do not let your past chase you! You can wait for two years or less to get back on track and apply for VA loans. If a borrower has had a history of bankruptcy, waiting for a year can do the trick. VA loans turn out to be the safest choice for buyers with an unstable financial situation.
Over a decade, the loan program has managed to retain its position as a sought-after alternative. Even with no down payment required, the VA loan makes a safe choice. The program comes with a unique requirement and helps borrowers meet their obligations with ease. Now, a VA loan is the perfect solution for millennial veterans as it saves millions from foreclosure claims.
82% of VA loan programs have no down payment option; therefore, start looking around for a lender today. The mortgage program offers multiple benefits so you should know whether you have a solid chance. Discuss your financial situation with a lender. Generally, 550 or 500 credit scores are acceptable for the loan program. Browse your options and put an extra focus on the requirements. Start early and work on your credit scores if required. Good luck!
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