VA Home Loans
VA Loans are for all Veterans and Active Military personnel living in or moving to Texas.
If you are or have been in the military (including the Reserves or National Guard), you may meet the VA mortgage Eligibility. The Department of Veterans Affairs, commonly referred to as the VA, has made home ownership easier for veterans (and in some cases their surviving spouses) through its loan guarantee program.
If you qualify under the guidelines, you can buy a home with little or no down payment and often at a lower interest rate than conventional fixed-rate mortgages.
While the VA does not actually lend the money, it assumes some of the risk for the loan. To partially offset this, they charge a "funding fee," which can be paid in cash at closing or can be financed over the life of the loan.
VA home loans are assumable under certain conditions.
Which means if you decide to sell your property, the buyer may take over your mortgage with the same interest rate and payments -- a good selling point. The buyer who assumes the loan does not have to be a veteran. The VA loan often is a very cost-effective alternative for veterans or current military personnel.
Loan Limits and Ratios.
Their are limits on the amount you can finance. But there is greater flexibility for the payment of closing costs: the seller is allowed to pay all discount points and other closing costs.
Currently the maximum loan amount is $417,000 in Texas. And the current maximum debt to income ratio is at 41%. See our VA Loan Calculator to see if you Qualify (it's on the mortgage calculators page).
VA Loans Offer the Following Important Benefits:
- Equal opportunity for all qualified veterans and active duty military.
- There is no PMI (private mortgage insurance).
- No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
- Buyer informed of reasonable value from the appraisal.
- Negotiable interest rate.
- Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
- Closing costs are comparable with other financing types (and could be lower).
- No mortgage insurance premiums.
- An assumable mortgage.
- Right to prepay without penalty.
- VA assistance to veteran borrowers in default due to temporary financial difficulty.
For current VA Loan rates please contact us because they are priced daily.
Links for additional VA Loan information:
- See the VA Streamline Refinance IRRRL loan page for answers to refinancing your VA loan.
- General Rules for Eligibility for VA Loan.
- What is the VA Funding Fee?
- VA Loan qualify calculator.
