Have you ever served in the military? Do you have a spouse who has?
If so, you could be eligible for one of the best home mortgage options available; the VA loan.
Very few people have the opportunity to purchase a home without saving up a significant down payment. But thanks to your current or previous military service, you can buy a home with a zero down payment.
That could allow you to purchase a home years earlier than you may have anticipated.
What is a VA loan and how can you get one? We answer all your questions below about the best VA loans Texas has to offer.
What Are VA Loans?
VA loans are available specifically for active or previous military service members. Individual lenders, such as banks or private mortgage lenders offer VA loans.
The loans are backed by the Department of Veteran’s Affairs, a government agency. The government itself is not funding the loan, but it backs them up. This gives individual lenders confidence when making new VA loans.
The loans exist to make home-buying more accessible to military service members, as a benefit for their time serving our country.
The main benefit of getting a VA loan is the accessibility; low or no down payment is required, and there are often looser credit score requirements. Plus, closing costs can often be paid for by the lender or the seller, meaning you might need very much cash at all to purchase a home.
Interested in getting a Texas VA home loan? Here’s what you need to know.
What Are the VA Home Loan Limits in Texas?
VA loans in Texas, as with any other state, have designated loan limits. The maximum VA loan in Texas in all counties across the state is $548,250.
However, this limit is for those who do not have their full VA loan entitlement. Those who do have their full entitlement are not restricted to the loan limits and can borrow as much as their lender is willing to extend.
Benefits of Getting a VA Loan
If you have served in the military and are eligible for a VA loan, there is no reason to seek out any other mortgage options.
VA loans come with so many benefits. Here’s why you need a VA loan.
No or Low Down Payment
In the past, most people who have wanted to own a home had to save up a 20% down payment. Today, with so many mortgage programs available, the average first-time homebuyer puts just 7% down.
In 2020, the median home price in Texas was $249,000. Even with a low 7% down payment, would-be home buyers would still need to save up over $17,000 plus additional funds for closing costs.
With a VA loan, you can put zero money down on your new home purchase. Rather than saving up for years, you can start the home buying process today.
Since VA loans are backed by the federal government, they are considered low risk. As such, lenders are willing to offer lower interest rates, since high rates are associated with high-risk borrowers.
That means that you will get to save tens of thousands of dollars over the life of your mortgage than if you got a traditional mortgage.
Typically when homebuyers put less than 20% down, they are required to make an additional payment each month for private mortgage insurance, or PMI.
PMI rates are usually 1% of your total loan balance each year. If you have a mortgage of $200,000, you would have to pay $2,000 per year or $166 per month in PMI.
Thanks to VA loans, you are not required to pay this at all, again saving thousands over the life of your loan.
VA Loans Texas; Requirements for Getting Started
There are multiple requirements for getting VA loans in Texas, most of which are standard throughout the country.
The biggest requirement is determining your eligibility. To acquire a VA loan, you need to meet at least one of the following requirements:
- Served for 90 consecutive active days during wartime
- Served at least 181 days of active service during peacetime
- Served 6 years or more in the National Guard or Reserves
If your spouse died while in the line of duty or to a service-related disability, you may qualify for a VA loan as well.
To start your VA home loan journey, you’ll need a VA loan Certificate of Eligibility (COE) which you can apply for through your eBenefits portal online.
Homes purchased using a VA loan must be your primary residence. You have to live in the home. VA loans cannot be used for vacation or investment properties.
Since your loans originate from mortgage lenders and not the government, lenders will still have to approve you as a borrower. This means proving current income, not having too much debt, and having a reasonable credit score.
The government does not require a minimum credit score for VA loans so it’s up to individual lenders to set limits for borrowers.
Have Questions About Getting Started?
Applying for a mortgage and buying a home is a big step. For first time homebuyers, it can be an intimidating process.
We understand your fears and concerns. If you have any questions at all about the home buying process, or about getting a VA loan, we are here to help.
You can contact us at any time. We are happy to help and can’t wait to make your home buying dreams a reality.
Apply for Your VA Loan in Texas Today
The benefits of purchasing a home with a VA loan are undeniable; you can get into your new home far quicker, with far less cash upfront utilizing this amazing program.
Supreme Lending is based in Dallas, Texas, yet is licensed in all 50 states. Thanks to our “customers come first” approach to mortgage lending, we’ve won countless awards over the last two decades.
We are here to support you through the home buying process. We want to help you fund your dream home here in Texas.
VA loans Texas; ready to get started? Our goal is to make it as easy as possible for you. You can fill out this form to set up an appointment with our team.