VA loans in San Diego are available for eligible veterans who desire to buy a house with some fantastic benefits. If you are looking to purchase a new home in the San Diego area, you may already be gathering all of the information that you need to complete the process successfully.
Though you may have quite a bit to do in your preparation, one of the most essential is securing the financing for your home. Fortunately, there are many financing options available to those that need a mortgage to buy a house, including loans through the U.S. Department of Veterans Affairs.
Here are five significant benefits of securing VA loans in San Diego.
No Down Payment Requirements
Unlike conventional mortgage loan requirements, VA loans do not require the prospective homeowner to pay a down payment at closing. This is a great benefit for veterans and their families, especially since it is not necessary to save for several years before they can start the buying process.
Competitive Interest Rates
When a prospective homeowner is looking for their financing, one of the most critical aspects of payment affordability is having the lowest possible interest rate. With VA loans in San Diego, home buyers will not be concerned about their interest rates.
Interest rates charges on a VA loan are inherently lower than conventional loan financing. In fact, the ranges in percentage are as low as .5 to 1%.
Lower Credit Requirements for Applicants
If you apply for a loan with a bad credit score, you may experience several different kinds of problems that can prevent you from securing the home loan that you want. In fact, when the credit score is low, the loan may be turned down, or the interest rates may be too high for an affordable monthly payment.
In either case, low credit scores can be a considerable barrier to buying a new home for your family. On the other hand, when an individual is applying for VA loans in San Diego, applicants will find that the credit requirements are relaxed.
Therefore, when a veteran or their family members apply for a VA loan, they will more than likely realize that they do not need a perfect credit score to secure their financing.
It is also important to note that the competitive interest rates members of the armed forces receive are not based on the requirement of having a high credit score.
Closing Costs Having Limits
Another great benefit of applying for a VA loan in San Diego is related to the closing costs. Even though all mortgages traditionally come with expenses paid at the official closing of escrow, there are some limits imposed on VA loans.
In fact, based on VA underwriting guidelines, veterans are only required to pay a certain amount of loan fees and are protected from many other traditional closing costs.
No Private Mortgage Insurance
Unlike FHA, Fannie Mae or Freddie Mac loans with down payments less than 20 percent, VA loans require no monthly mortgage insurance premium which will increase the monthly payment and can seriously impact qualifying. Using the same example as above, on a 30 year, 5.00 percent down $200,000 mortgage, the private mortgage insurance premium can add another $165 to the monthly payment.
- VA Loans in San Diego provide incredible benefits to servicemembers looking to buy a new house.
- Eligible veterans can save a significant amount of money over traditional mortgages by working with an approved lender.
- If you are eligible for a VA loan and are ready to start looking at available houses in San Diego, contact our Realtor Valeria Garrow and start your search today.