This guest post was written by Matt Polsky of the VAMortgageCenter.com. Matt's email is mpolsky@vamortgagecenter.com. Thank you Matt
VA Home Loans Benefit our New Jersey Veterans
Service members and veterans in New Jersey planning to purchase a home have an option unavailable to the general public. It has been almost 70 years since Congress created the VA Home Loan Guaranty Program, which helps the men and women who serve our country buy the home of their dreams. Whether it is a house at Fort Dix or a place in Hoboken, a New Jersey VA loan surpasses the benefits offered by a conventional loan.
Almost without question, the best part of New Jersey VA loans is the miniscule down payment. Most VA loan borrowers pay 0 percent down, and they still use the loan to finance 100 percent of the home. Several counties in New Jersey have VA loan limits of $735,000, which is higher than the usual $417,000. Either way, military homebuyers in New Jersey will not find a traditional loan option with a down payment lower than 15 percent. So immediately, a VA loan saves the borrower thousands of dollars.
More immediate savings come from sellers paying up to 6 percent of closing and concession costs. Often, those costs are lower than they would be for a conventional mortgage. During the life of the New Jersey VA loan, borrowers can expect to save money every month. VA loans do not charge private mortgage insurance (PMI). Beyond that, interest rates dip for VA loans because the VA insures up to 25 percent of every loan. VA-approved lenders then assume less risk and reduce interest rates. More benefits include:
-No prepayment penalty
-Refinancing programs that lower interest rates
-Capped interest rates for active-duty homebuyers
-Assistance and counseling to homeowners approaching default
Due to the burst of the housing bubble and credit crunch, it’s actually easier to qualify for a VA loan than a conventional loan. About 80 percent of borrowers who qualified for a VA loan did not qualify for a conventional mortgage. In large part, this is a result of more lenient credit and financial standards for VA loans. VA-approved lenders, such as VA Mortgage Center.com, are satisfied with credit scores of 620 and debt-to-income ratios of 41 percent. Even homebuyers with a foreclosure or bankruptcy in their past can qualify.
However, not every service member or veteran is eligible for a New Jersey VA loan. Military members who served for 90 days or 181 days on active duty during wartime or peacetime, respectively, may qualify. Reservists and National Guard members must have served at least six years before they may qualify. Even surviving spouses may qualify if they have not remarried.
For more information on New Jersey VA loans, contact a VA-approved lender today.
