At Stonebriar Mortgage, it is our honor and privilege to be able to work with current and retired military homebuyers throughout Texas.
Through the VA loan program, qualifying service members can apply to purchase a home in Dallas, San Antonio, Houston, Austin, TX, or elsewhere in Texas with zero down payment.
What is a VA Loan?
The VA loan program is a government-insured mortgage program backed by the Department of Veterans Affairs (VA).
The VA insures loans so that it is easier for veterans to qualify to buy a home, and so that more competitive mortgage rates and terms are available to those who served our country.
Eligible members of our nation’s armed forces not only can purchase a residence using a VA mortgage, but also refinance one, build one, or upgrade one.
VA Mortgage Benefits: Zero Down and More
If you qualify for a VA mortgage, the benefits are many:
- No down payment is necessary to purchase a home using a VA mortgage.
- Qualifying for a VA loan does not require perfect credit or a perfect DTI ratio. You do need to meet the service record requirements (more on that below).
- Interest rates on VA loans are competitive despite their relaxed eligibility standards.
- Whereas you need to pay for private mortgage insurance (PMI) for an FHA mortgage, you have no such requirement with a VA loan.
- There are many situations where the seller may pay the closing costs. But if the closing costs fall on you to pay, you can rest assured that a low cap will keep them affordable.
- If you are a qualified disabled veteran, you may not need to pay the funding fee for your loan.
- Whereas many types of mortgages carry penalties for early payments, you will not pay a pre-payment penalty if you finish paying off your mortgage ahead of time.
Who is Eligible to Buy a Home With a VA Mortgage in the Greater Dallas, TX Area?
Homebuyers who are eligible for VA loans fall into three basic categories:
- Active duty service members
- Eligible surviving spouses
You may be eligible if you are or were in any branch of the military, the Reserve, or the National Guard.
As previously discussed, there is a minimum service requirement in order to be eligible to take out a VA mortgage.
Most of the time, 90 days of service during wartime or 181 consecutive days of service during peacetime will qualify you for a VA mortgage.
There are different requirements for some eras of service, so you will need to find out what the requirements are for the time period during which you were active.
- So long as the required waiting period has expired, you can obtain a VA mortgage even if you had a foreclosure or bankruptcy.
- VA mortgage benefits are not single use. If you had a VA loan before for another residence, nothing is standing in the way of taking out another VA mortgage today.
- There is no date by which you must use your benefits before they expire. Your VA mortgage benefits last forever.
If you have any additional questions about your eligibility, we can answer them during your VA loan consultation.
The Texas VA Loan Application Process: How Does It Work?
Following are the basic steps you will need to take in order to apply for a VA mortgage in Dallas, Flower Mound, Lucas, Plano, Frisco, or elsewhere in TX:
- 1 Begin by obtaining your Certificate of Eligibility.
- 2 As you will need to document your past two years of employment, you should pull together the relevant tax information and paperwork.
- 3 Obtain documentation on your banking and savings accounts.
- 4 Order your credit score and credit report. If you need to raise your score and can do so (i.e. by removing incorrect entries from your report), do so.
- 5 Work with a lending institution which is approved by the Department of Veterans Affairs.
If mistakes are made during the application process, untimely delays can result. This is the case with any type of mortgage application, but processing VA loans involves jumping through more hoops than other types of loans.
Stonebriar Mortgage has walked numerous VA homebuyers through the VA loan application process rapidly and successfully.
We are well-acquainted with many of the obstacles which can arise during the process and know how to navigate around them for fast approval.