The U.S.Department of Veteran Affairs (VA) has worked vigorously for decades to help our veterans fulfill the American dream of home ownership. VA home loans Albuquerque are provided by private lenders, such as banks and mortgage companies. The VA guarantees a portion of the loan, thus enabling the lender to provide those that qualify, more favorable terms. If you or your spouse is a veteran, you owe it to yourself to look into whether a VA loan could help you make buying a home in Albuquerque simpler and more affordable.
VA Home Loans Albuquerque
For many people, the hardest part of buying a home is saving up for a down payment. One of the biggest advantages of obtaining an Albuquerque VA home loans is that in most cases no down payment is required. VA Home Loans Albuquerque help smooth the way for qualified veterans, active-duty personnel, reservists and Guardsmen, with fixed and adjustable-rate products designed to place their home ownership goals well within reach.
While there are non-VA loans that will let you buy a home with little to no upfront cost, VA loans tend to be a much better option because the interest rates are more competitive. With most home loans, the less you put down the more you pay in interest, but with a VA loan, interest is basically the same as regular market loans. Typically, Albuquerque VA home loans also come with lower closing costs and fewer fees than most conventional loans.
Albuquerque VA Home Loan Benefits
- Less Cash Needed – Up to 100% financing.
- Asset Preserving – Many transactions require zero down payment.
- Seller Contributions – Allows sellers to contribute up to 4% in addition to closing costs and discount points.
- Lower Interest Rates – Typically lower interest rates compared to standard, conventional financing. Down Payment Assistance Programs available for qualified borrowers.
- Lower Credit Score – you may qualify for VA home loans Albuquerque with a lower credit score compared to a FHA or Conventional loan.
- No Mortgage Insurance – most mortgages will require mortgage insurance if you don’t make a 20% down payment. Mortgage insurance is a benefit to the lender not the borrow, however the borrower pays for the insurance
- No Cash Reserves – Not required unless relying on rental income from anything other than the subject property.
- Shorter Waiting period to qualify since bankruptcy or foreclosure
Albuquerque VA Home Loans Who Qualifies
Albuquerque VA mortages are available for homes for personal occupancy. However, because of the intent of these loans, they are available to very select groups of people:
- Those who spend 181 days in the service during times of peace
- Those who served during 90 consecutive days during times of war
- Those who have spent 6 or more years in the National Guard or Reserves
- Spouses of those who died as a result of their service
In order to prove that you belong to one of the above groups and prove to a lender that you qualify for an Albuquerque VA home loan, the borrower will need to obtain a document called a Certificate of Eligibility (COE). Lenders can establish eligibility and issue an online COE immediately if the VA has sufficient data in their records.
Keep in mind that obtaining a COE means that you are eligible for a VA home loan. The VA guarantees the loan, but they do not actually issue loans. The loan amount you ultimately qualify for will depend on your income, credit score and other factors that will vary depending on the particular lender offering the loan.
Albuquerque VA Home Mortgage Zero Down Payment
Albuquerque VA home loans are just like regular home loans in many respects, and the fact that you don’t have to make a down payment makes it easier for veterans to move into a new home as soon as possible. Instead of a down payment, the borrower will be required to pay a funding fee, which helps cover the risk that a down payment would usually cover.
Typically, the funding fee ranges from around 1.25 to 3.3% of the total purchase and is based on a number of factors. However, it is possible to get this fee waived if you make a down payment or qualify based on disabilities suffered by you or your spouse. What separates this fee from a down payment is that it can be included in your total loan, so you don’t have to pay it up front like down payment. Keep in mind that there is a $417,000 maximum if no down payment is made. For home purchases over $417,000, the down payment is 25% of the amount of the loan over $417,000.
Albuquerque VA Homes Loans Your Benefit
Albuquerque VA home loans have continued to honor and help our troops and their families move into a home of their own for over 70 years. Without the need of a down payment, a VA loan affords those that qualify the opportunity to realize the dream of home ownership sooner than most. If you or your spouse qualify for VA home loans Albuquerque, this type of option is definitely worth looking into.
For buyers, our foremost goal is to provide you with exceptional customer service and assist you in finding the right home in the right neighborhood. Our goals are to help you purchase the right home, make sure you don’t miss out on any homes that meet your needs, and make sure you don’t pay too much for your next home. Please utilize our Albuquerque real estate expertise to make your home search and buying experience as stress free and rewarding as possible.
Our extensive knowledge of the Albuquerque real estate market allows us to guide our clients intelligently whether you are looking to buy, sell or invest. Our mission is to provide exceptional customer service and assist you throughout the entire transaction. Please call us today or fill out the online contact form. Let us know how we can best serve your Albuquerque real estate needs. We look forward to speaking with you!