The Servicemen’s Readjustment Act was established in 1944 to provide veterans and their surviving spouses with various benefits. Among those benefits was the VA home loan program. The VA loan makes it possible for veterans and military to purchase homes with 100% financing, no mortgage insurance, and limited closing costs. Troy Mannella – LNM Lending Team of Security National Mortgage Company is proud to offer great rates on VA loans throughout Austin, Round Rock, Hutto, and Leander.
Texas VA Loan Benefits:
- 100% financing (appraised value cannot exceed sale price)
- VA funding fees can be financed with the loan (up to 3.3%)
- No private mortgage insurance (PMI)
- No pre-payment penalty/
- VA regulation limits closing costs
- Up to $424,100 loan amount (certain counties may be higher)
Unlike many of the home loans available today, VA loans do not have a minimum credit score requirement. While no credit score requirement is set in stone, lenders often require a score of at least 620. The lack of a formal credit score requirement means we are able to be flexible with each borrower based on their individual circumstances. You should be prepared to provide W-2 statements, recent paystubs, checking account and savings account information, and other documentation to help support your requested loan amount.
Most veterans, military, and spouses of deceased military members will be eligible to apply for a VA loan. If minimum active duty service requirements have been met, veterans can apply without delay. Active duty servicemembers will need to complete a minimum of 6 months of service before they reach eligibility. National Guard and reservists will need to wait 6 years, however if they are called to active duty at any point, they will become eligible after 181 days of service.
Veterans and military members must obtain their Certificate of Eligibility (COE) before applying for a VA loan. The COE is used to prove to a lender that you have met the minimum service requirements. It does not guarantee you will be approved for a loan. One of the easiest ways to get your COE is through the VA’s eBenefits Portal. We can also help you with the process when you are ready to apply.
For those who currently have a VA loan, various refinancing options are available. The Interest Rate Reduction Refinance Loan (IRRRL) is available to veterans looking to take advantage of lower interest rates. This is commonly referred to as the VA’s streamline refinance loan. VA cash-out refinance loans can be a valuable option for homeowners who need extra cash for home improvements, high-interest debt consolidation, and other various expenses.
Troy Mannella – LNM Lending Team of Security National Mortgage Company is here to help the many veterans throughout Austin, Round Rock, Hutto, and Leander with all their VA loan needs. For more information or for any questions you may have on Texas VA loans, contact us today.