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Texas VA Loan
Are you a Veteran living in Texas and want to learn more about your Texas VA home loan benefits? In this Home Buying Insiders article we will take a closer look at the benefits of Texas VA home loan requirements.
If you're a veteran or active-duty military member looking to buy a home in Texas, VA loans can be an excellent option to consider. VA loans are a type of mortgage that is guaranteed by the Department of Veterans Affairs, making them accessible and affordable for eligible military personnel. In this article, we'll take a closer look at Texas VA loans, the benefits they offer, and the eligibility criteria you need to meet to apply. Click here if you are looking for a Texas VA loan lender.
Understanding Texas VA Loans
What are VA Loans?
VA loans are mortgage loans that are guaranteed by the Department of Veterans Affairs. These loans are available to eligible veterans, active-duty military members, and their surviving spouses. VA loans offer several benefits, including lower interest rates, zero down payment requirements, and no private mortgage insurance (PMI) requirements.
How do VA Loans Work?
When you apply for a VA loan, the lender determines your eligibility based on your military service history, credit score, and income. If you're eligible, the Department of Veterans Affairs guarantees a portion of the loan, making it easier for you to qualify for a mortgage. This guarantee reduces the lender's risk, allowing them to offer more favorable terms, such as lower interest rates and no down payment requirements.
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Call us now at (855) 956-4040. National VA Loans is here to help our Texas Veterans live the American Dream!
Benefits of Texas VA Loans
Texas VA Loans have many benefits below are a few to take note of.
No Down Payment Requirements
One of the most significant benefits of Texas VA loans is that they don't require a down payment. This means that eligible veterans and active-duty military members can finance 100% of their home's purchase price. This benefit can be a game-changer for those who might not have saved enough money for a down payment.
Lower Interest Rates
VA loans often have lower interest rates than other types of mortgages. This can save you thousands of dollars over the life of your loan. Lower interest rates mean lower monthly payments, which can help you afford a more expensive home or lower your monthly housing expenses.
No Private Mortgage Insurance (PMI)
Unlike other types of mortgages, VA loans don't require private mortgage insurance (PMI). PMI is an additional expense that borrowers with less than a 20% down payment must pay to protect the lender in case of default. With VA loans, the Department of Veterans Affairs guarantees a portion of the loan, eliminating the need for PMI.
Eligibility for Texas VA Loans
Service Requirements
To be eligible for a Texas VA loan, you must meet certain service requirements. This includes:
- 90 consecutive days of active-duty service during wartime
- 181 consecutive days of active-duty service during peacetime
- 6 years of service in the National Guard or Reserves
- Surviving spouses of veterans who died in service or as a result of a service-connected disability
Credit Score and Income Requirements
While VA loans are more accessible than other types of mortgages, you still need to meet credit score and income requirements to qualify. The Department of Veterans Affairs doesn't have a minimum credit score requirement, but most lenders require a credit score of at least 620. You'll also need to show proof of income to demonstrate that you can afford the monthly mortgage payments.
Texas VA Loans Application Process:
Here are the steps to follow when applying for a Texas VA Loan:
- Determine your eligibility: Check your eligibility for a Texas VA Loan by visiting the VA's website or contacting a VA-approved lender.
- Obtain your Certificate of Eligibility (COE): You can apply for a COE online, through a VA-approved lender, or by mail using VA Form 26-1880.
- Choose a VA-approved lender: You can find a VA-approved lender by visiting the VA's website or asking for recommendations from friends or family.
- Pre-approval: Get pre-approved for a Texas VA Loan by providing your lender with your financial information, such as income, assets, and debts.
- Find a home: Work with your real estate agent to find a home that meets your needs and budget.
- Sign a Purchase Agreement: Once you have found a home, sign a Purchase Agreement with the seller.
- Close the Loan: Your lender will arrange for a home appraisal and underwriting, after which you will sign the loan documents and pay the closing costs.
Texas VA Mortgage Questions
If you're a veteran or active-duty service member in Texas, a VA loan could be a great option to help you achieve your dream of homeownership. By offering favorable terms and requirements, VA loans make it easier for veterans and their families to secure a mortgage and buy a home. If you have a Texas VA loan question call us at (855) 956-4040.
FAQ
The time it takes to get a Texas VA Loan depends on several factors, such as the lender's processing time, appraisal, and underwriting. However, most Texas VA Loans are closed within 30 to 45 days.
The maximum amount that can be borrowed with a Texas VA Loan depends on the county where the property is located and is subject to change annually. For 2023, the maximum loan amount in most Texas counties is $726,200 for a single-family home, but it can go up to $1,089,300 in certain high-cost counties. However, keep in mind that the maximum loan amount is not the same as the maximum purchase price of the home, and it's crucial to work with your lender to determine how much you can afford to borrow based on your income, expenses, and credit history.
While VA cash-out refinance loans are not allowed by the Texas state constitution, homeowners in Texas can still access funds through a 50(a)(6) loan. Most lenders offer this type of loan, which allows homeowners to borrow up to 80% of the home's value with a loan-to-value ratio of 80%.