VA loans have become increasingly attractive for home financing options for military borrowers.

Here is why:

    1. No Down Payment
      Qualified borrowers in most parts of the country can purchase homes worth up to a certain amount without making a down payment.
      FHA: 3.5% down
      Conventional: 5% down


    1. No Private Mortgage Insurance (PMI)
      This is required for conventional borrowers who can’t put down at least 20%. There is absolutely no PMI when purchasing with a VA loan.


    1. Higher Allowable DTI Ratio
      The VA typically looks for a debt-to-income ratio of 41% or less. That benchmark is higher than what you would see on conventional and FHA loans.


    1. No Prepayment Penalty
      You can pay off your VA loan early with no fear of getting hit with any prepayment penalties. Other types of loans may penalize borrowers for trying to get ahead of the game.


    1. Flexible Bankruptcy and Foreclosure Rules
      Those who qualify can be eligible for a VA home loan two years after a bankruptcy or foreclosure. The wait can be much longer for other types of loans.


As part of the many benefits offered to Veterans, there is a list of minimum property requirements for VA loans that must be met in order for the loan to be approved. This is put in place to verify that the potential home is safe and livable before the Veteran is able to own the property. The minimum standards cover a wide range of topics. Items such as basic access to the home and yard as well as the presence of basic utilities are covered in detail. The requirements also dictate how certain parts of the home need to be ventilated as well as the necessary space for a person to live in safety. All of these items are intended to give the Veteran the very basics of a decent property without getting a bad deal from a seller.

The Sims Norris Team is eager to help its community of Veterans seek all of their possible benefits and opportunities. We are always available to give you more information and assist with purchasing your dream home.