5 Commonly Asked Questions About Texas VA Home Loans

VA loans are a promising way to fulfill the dream of owning a home in Texas and other regions of the US for the veterans. The loan is guaranteed by US Department of Veteran Affairs (VA) and generally issued by private lenders. Though VA loans are a lucrative option, the rules governing the eligibility, entitlement are fairly intricate and complex. The blog post demystifies and discusses a few commonly asked questions about Texas veteran home loan. Let’s have a look.

1. What are the advantages of VA loan over others?

Texas veteran home loan has an edge over conventional financing methods such as:

∑ No down Payment

Qualified Texas Veterans get cent percent finance for buying a home, without a down payment or monthly mortgage insurance payments.

∑ Lucrative Interest Rates

VA loan rates are 0.5 to 1 percent lower than traditional interest rates, as a result of decreased risk by lenders.

∑ Flexible Credit Scores

Unlike conventional financing options, VA loan lenders are not as stringent about the credit score of the applicant. Most of the VA loan lenders are alright with a credit score of 620.

2. What is the qualification criteria for a Texas Veteran home loan?

Texas veterans need to fall under the following criteria for a VA home loan:

Military personnels who have successfully served 90 days of consecutive service during wartime

181 days of continuous military service during peacetime

Six years of service and an honorable discharge from the National Guard or Reserves

Dependent spouse of a service member who died in duty because of service-related disability, or is missing during the war

In active possession of a valid Certificate of Eligibility (COE)

3. Can a VA loan be utilized for financing a second home?

VA loan benefits are applicable for a second home, provided it is considered your primary residence. Veterans are required to go through multiple occupancy, entitlement, and eligibility checks; however, staying in the property for a period of six months or more is considered good enough for financing a second home.

4. What is the VA Loan Entitlement Limit?

Basic entitlement for each eligible veteran is $36,000 and a bonus entitlement of $68,250. Loans exceeding $144,000 to buy a home get an additional entitlement limit up to the conforming limits, based on the county.

5. What is funding fee for VA Loan?

Funding fee is the cost associated with a VA loan and ensures that the loan requires zero monthly down payments and monthly mortgage insurance. The funding fee is a percentage of the loan, generally 2.15 percent of the loan amount and is credited tothe VA. However, a veteran can be waived off the funding fee with disability ratings, and the exemption is equally applicable to the dependent spouses of the veterans.

The Way Forward

VA loans are a definite way to secure a dream home for the veterans. Before applying for a Texas veteran home loan, the borrower needs to go through comprehensive checks to be eligible for getting the loan. Though lucrative, the process can quickly transform into a hassle because of the intricate guidelines laid by the government, which are hard to comprehend. Therefore, you must consult a VA loan expert, who can assist you from start to finish of the VA loan process.