Purchasing your new home with a VA loan has many advantages. The primary one being that for VA home purchase loans under $625,000 there is no down payment required. You can get a loan for up $625,000 and the lender will cover your closing costs including the expense of establishing your tax and insurance impound account. With other loans such as FHA and Conventional there is typically a 3.5% - 5.0% minimum down payment.
For loans over $625,000 the VA requires a down payment of 20% over $625,000 from the Veteran.
Purchase price $800,000
0-$625,000 no down payment
$800,000 - $625,000 = $175,000 x 25% = $43,750
In this example the veteran must have a down payment of $43,750
Another advantage is the required minimum credit score for VA home purchase loans is less than the previously mentioned loans. There is still a minimum requirement but it is less than other types of loan programs.
To make your home hunting more successful we can evaluate your credit and income documentation and determine what the maximum loan amount you can qualify for. Presenting a pre-qualification letter with your offer to purchase tells the seller you are serious and if they choose your offer have confidence you can close the transaction.
We can close purchase transactions in 30 days or less depending how quickly you want to move in.