VA Loan programs are a powerful lending option in the market, offering military and veteran homebuyers the ability to purchase a home with major benefits, like no money down and no private mortgage insurance.
Key Features of VA Loan Programs in Waipahu Hawaii
- 100% financing, offering no money down options
- No private mortgage insurance needed, thanks to the guaranty provided by the VA
- Flexible qualification requirements
- Closing costs and the VA Funding Fee can be borrowed and rolled into the loan
Understand the VA Loan Benefit
No Down Payment Required
The VA home loan remains one of the only lending programs on the market that offers a *zero down payment mortgage. Most lending programs require at least some form of down payment, with popular amounts ranging from *3.5% to 20%. So if you’re purchasing a $200,000 home, that could mean coming up with at least $7,000 and as much as $40,000. Borrowers using the VA loan can purchase immediately with no money down, avoiding years of saving up and paying rent to someone else.
No Monthly Mortgage Insurance
VA loans do not require mortgage insurance, even when the home buyer is putting no money down. As a result, the buyer not only saves cash upfront but can also save thousands over the lifetime of the loan and give the buyer more purchasing power when shopping for a home.
Flexible Underwriting Guidelines
The VA home loan has very flexible underwriting guidelines compared to a conventional mortgage and other types of home loan financing. Credit scores can go as low as 40 points lower than conventional loans, and underwriters can approve the loan based on makes-sense financing.
VA loans also allow for a higher debt-to-income ratio than other types of mortgages. Because of this, borrowers qualify for tens of thousands more in purchase price than if they used conventional financing in some markets.