Jay asked if he could do a guest post, so here it is...
Veterans and active duty military members throughout Minnesota continue to turn to VA loans when the time comes to purchase a home.
These low-cost, flexible loans have surged nationwide in the last year, as military homebuyers flock to a program geared toward ensuring that those who serve can afford the dream of homeownership. In fact, <a href="http://ping.fm/XmCEJ">VA loan</a> volume was up 80 percent last year.
The VA already guarantees more than 1,600 mortgages in Minnesota, which is home to about 400,000 veterans. With credit tight and housing prices plummeting, more and more Minnesota veterans and their families are looking to maximize their dollar by taking advantage of the financial benefits earned by their service.
VA loans allow qualified borrowers to purchase homes worth up to $417,000 without a down payment. For most private conventional loans, the minimum down payment is 15 percent.
VA loans are also easier to obtain for most military homebuyers. About 8 in 10 VA borrowers couldn’t have qualified for a conventional loan.
The no-down payment benefit is routinely cited by veterans as the program’s finest. But VA borrowers also:
-Avoid paying private monthly mortgage insurance
-Can purchase with higher debt-to-income ratios than most loans
-Allow sellers to pay up to 6 percent of closing costs and concessions
-Face no penalties for pre-paying on their mortgage
The Department of Veterans Affairs guarantees about 25 percent of each borrower’s mortgage. That guarantee helps spur VA-approved lenders to work with military homebuyers and issue excellent loan terms.
To be eligible for a VA loan, borrowers must first fall within these <a href="http://ping.fm/sx5SVva_loan_guidelines.html">VA Loan Guidelines</a>:
-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
Veterans and active duty members can learn more about the power of VA loans by visiting VAMortgageCenter.com
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