A Few Things That You Need to Know About Texas VA Loans

VA Loans, or the loans guaranteed by the United States Department of Veteran Affairs, are perhaps one of the most beneficial federal programs for our military veterans. Now, the lone star state of Texas which has over a million veterans is a state which, quite unexpectedly, has one of the largest numbers of VA Loan Applications in the country. If you are a veteran residing in the state of Texas, then there are a few things that you should know before applying for a VA Loan in Texas. Here, we would be taking a look at some of the facts that you should know before applying for a VA Loan.

VA Loan Rates are generally lower than conventional loans

VA Loans are guaranteed by a government authority and hence the risk to the lender offering you the loan is lower than in case of conventional loans. Therefore, the interest rates for VA Loans are less compared to conventional loans. For example, the VA Land Loan Rates in Texas is almost fifty basis points or 0.50% lower than conventional mortgages. However, you should note that the VA Land Loans are not available for buying land and they are only available for buying property.

Although the VA does not have a minimum credit requirement, lenders would still want to see your credit score

The Department of Veteran Affairs does not have a minimum credit score requirement for veterans, but individual lenders might still ask for your credit score before they give you the loan. However, the credit requirement is much low compared to any other loan. Leading VA Loan Lenders in Texas, would offer you Land Loans for Veterans even if you have a low credit score.

You Can Refinance Your Existing VA Loans with a VA IRRRL

VA Loans have one big advantage that other loan programs like the loan program by the Texas Veterans Land Program by the Texas Veteran Land Board. That is the fact that, you can refinance your existing VA loan Texas with a VA interest rate reduction refinance loan or VA IRRRL. This way you can reduce the interest rate and make the loan easier on your pocket.

So what you are waiting for? If you are a proud military veteran residing in the state of Texas, then get in touch with a professional VA Loan Lender in Texas and give life to your dreams.

Knowing More about VA Loan and its Mortgage Rates

The VA loan program has turned out to be a highly successful military home loan guaranty program offered by the government of the United States. Today it is a highly popular mortgage loan offered by qualified lenders in the city, and approved by the federal government. Today, it has been the cause why more than 20 million veterans in the country are able to lead a stable and secure life within their own houses, with their families. But, changes of regulations and fear of a market collapse, keep people skeptical about the loans and whether they would facilitate their requirements.

Why is it advantageous to have a VA loan?
 

This loan program is indeed powerful and highly flexible. Thus, it is perfect for people who are looking for home ownership and are struggling to accumulate the required finance. The best part is that one does not need having a private mortgage insurance for getting a loan amount sanctioned. Competitive rates and terms are allowed by lenders of VA loans and one can get to save a lot of money while closing. However, it essential to know about the mortgage rates for VA loans before house hunting is started.

What are the current home loan rates?

The interest rate currently is pretty low and that is exactly why this is the right time to invest in home ownership. Let us take a look at the VA home loan rates today.

5-Year ARM	3.125%	(3.62% APR)
30-Year Fixed	3.75%	(4.011% APR)
15-Year Fixed	2.875%	(3.345% APR)
VA 30-Year Fixed	3.25%	(3.505% APR)
VA 5/1 ARM	2.875%	(2.967% APR)

 

There are several factors that determine the rate of VA home loan. Though the interest rates would be as mentioned, it would also depend on certain other factors. These factors include credit score, loan duration, debt-to-income ratio and current situations in the market. The best VA loan rates can be achieved once you have conducted your share of market research. Every lender would want to know all about your debt-to-income ratio and credit score before a loan is guaranteed. But, the rules aren’t very stringent and therefore a decently good credit score will get you really low interest rates.