As a member of the regular military, National Guard, reservist, and a veteran, you may be eligible to apply for a VA loan. The privilege also applies to spouses of members of the military forces who die while on active duties. This provision by the Department of Veteran Affairs makes it easy for members of the disciplined forces to own a home.
While the department doesn’t dispense these loans, they act as a guarantor, which helps you overcome certain hurdles when applying for a VA loan in Ogden. Wasatch Peaks Credit Union shares some information that might help you during the application process.
Lowered entry barriers for the qualified
If you meet the rule of six, you can start your home-owning journey on a high note. As an active military personnel, you’re eligible for a home loan after six months of service. In the absence of active duty, reservists and National Guard members become eligible after six years.
If called for active duty, however, you’re eligible after six months of service. In the time of war, active duty members, reservists, and National Guards become eligible after only 90 days. Your likelihood of qualifying for a home loan increases if you were ever deployed to a foreign soil.
Lower total home prices
Since Veteran Affairs guarantee the loan, you don’t need to worry about your credit score or raising a substantial deposit when looking to buy a home. That means you don’t need to pay the private mortgage insurance if you borrow more than 80 percent of the home value.
If putting no money down on the loan, you will only need to pay a one-time fee that amounts to 2.15 percent of the loan. Raising a ten percent deposit on the home slashes the rate to 1.25 percent. However, you need a steady and sufficient paycheck and a not be buckling under the weight of a massive debt to qualify for the loan.
As a member of the armed forces, you have a shot at owning a home without too much hassle. With the help of the Veteran Affairs department, you can access affordable home loans to buy a house.