A guest post by Robert at VAMortageCenter.com:
VA loans are growing in popularity in Nevada and across the Southwest.
The Department of Veterans Affairs now guarantees more than 2,500 home loans
in Nevada worth more than $624 million. Scores of Nevada's 237,000 veterans
are turning to the VA for help with their home purchase or refinance.
The reason is simple: Simplicity. VA loans offer qualified borrowers a host
of financial benefits that help streamline the home-buying process. Veterans
who qualify can purchase a home worth up to $417,000 without putting down a
single dollar.
VA loans also come with no private monthly mortgage insurance, higher
debt-to-income ratios than most conventional loans and seller-financed
closing costs.
This program was created specifically to boost lending to military members,
who at times struggle to build a solid credit profile because of frequent
moves and overseas deployments.
The VA guarantees to repay about a quarter of a borrower's mortgage in the
event of default. That guarantee often translates into excellent loan terms
from VA-approved lenders.
VA loans are often easier for veterans and military members to obtain than
conventional loans. About eight in 10 VA loan recipients could not have
qualified for a conventional loan.
Veterans without sterling credit can still qualify for a loan. At present,
VA lenders typically look for a credit score of at least 620.
Thousands of Nevada veterans and active-duty members may be eligible for a
VA loan. Applicants must be:
-Military members who've served 181 days on active duty or three months
during war time may be eligible.
-People who have spent at least a half-dozen years in the National Guard or
Reserves
-Spouses of those killed in the line of duty
Those who meet these standards must obtain a Certificate of Eligibility (COE) from the VA. That's a document basically proving your
ability to qualify for a VA loan. The COE forms are available online at the
VA website.
The VA uses a lending limit that varies by geography. In most parts of the
nation, including Nevada, the loan limit is $417,000.
--------------------------------------------------------------