There is a loan program for every mortgage borrower if you resort to the right real-estate lending service but for many, the VA loan stands out for a number of factors. Further supported by the U.S Department of Veteran Affairs, VA loans are formulated to assist the active-duty military personnel, veterans, and a few other people to turn their dream home projects into a reality at an affordable cost.
Here, we have put forth a few vital reasons why the VA loans for low credit scores in Houston appear to be lucrative for so many people. Take a look.
- Low Down Payment
The VA loans have the lucrative benefit of the very low amount of down payment. You just have to make 20% of the down payment but you will get a waiver of $453,100 and pay 20% of the amount more than this benchmark.
- Flexible Credit Score
Compared to the conventional Jumbo loans, where one is required to have a credit score of more than 710, the VA Jumbo loans in Texas can be a convenient option. These require a credit score of just 620 or above to qualify for such a loan. Therefore, it will definitely open many news doors to achieving your dream home.
- Zero PMI
Usually, in order to decrease their own risk on the Jumbo loans, the lenders make it compulsory to purchase the private mortgage insurance or PMI when you are making a down payment of less than 20%. This PMI can prove to be significantly expensive for loans worth hundreds or thousands of dollars. But now you can save thousands of dollars with VA Jumbo loans as these don’t require purchasing any PMI.
- Lower Rates of Interest
When compared to the traditional loan programs, the interest rates for the VA Jumbo loans are significantly lower. In fact, these are even more cost-effective than the government aided programs like the FHA or USDA loans. So, refrain from paying excessive interests by opting for the VA loans.
- Government Guarantee
VA Loans have such favorable terms and clauses because these come with a federal guarantee whereby a part of the loan will be repaid to the lender regardless of whether you can make the monthly installment or not. This kind of an assurance always motivates the lenders to provide the VA loans at the attractive terms as desired by the borrowers.
- Multiple Options
There are various kinds of VA loans available in the market, right from fixed to adjustable rate ones which can be used for buying a newly built home, a house, duplex, manufactured home, or even a condo. You can also use it for refinancing your existing mortgage and repairing or home improvement projects etc. And since these mortgage rates are set by the U.S Banks, credit unions, savings & loan institutions, or the mortgage lenders, each of them will have their set rates and fees. So, this allows you to choose from a variety of options and compare them according to your budget and requirements.
- Low Closing Costs
VA poses a limit to the closing costs charged by the lenders from the VA loan seekers. This is another amazing way in which VA loans can save your money. You can save your money and allocate it to the other expenses involving a new home including moving costs, home decor, repair projects etc.
VA loans are extremely easy to qualify. Just like other conventional loan programs, a proper documentation, a considerable credit history, and adequate income are necessary for the monthly payments. But these guidelines are more flexible for the VA loans. So, without any further delay, you should immediately apply for a VA Jumbo loan now.
Author Bio: Joan Gallardo, has 18+ years of experience as Senior Loan Officer, and here tells you why the VA Jumbo loans in Texas are a popular choice. Learn more about loan programs such as the VA loans for low credit scores in Houston by following his blogs.