Research shows veterans are taking out VA loans at a record pace. Is this mortgage option right for you?

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1.2 million veterans took advantage of VA home loan benefits in 2020, and more are expected this year. Find out where retired military personnel get the highest rate VA loans and learn more about the eligibility requirements (iStock)

Military veterans have access to low-interest housing loans through the United States Department of Veterans Affairs (VA). VA stated that it supported record 1.2 million credits in 2020, and new research shows it will break that record in 2021.

Consumers and military veterans alike were able to benefit from home purchases and mortgage refinancing at low rates. VA refinancing loans rose 76% in the first half of 2021 compared to the same period last year, and demand for VA purchase loans increased by 10% over the same time period. according to new research by Veterans United Home Loans… The study also analyzed the cities where Virginia homebuyers are most likely to move to find out where veterans are moving.

Keep reading to learn more about housing trends among veteran homeowners and how to get a VA loan to refinance or buy a home. And if you are not sure about the eligibility for a loan, you can visit Credible to connect with experienced loan officers and get answers to your mortgage questions.

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Veterans Enjoy VA Home Loan Benefits Nationwide

Military veterans are eligible for a range of benefits including VA home loans. These loans do not require a down payment or private mortgage insurance (PMI)which is usually required if you are not investing money. VA loans are also lenient when it comes to debt to income ratio (DTI) and minimum credit score requirements so that they can be an option if you have good or bad creditworthiness.

After serving in the military, many veterans enjoy VA home loan benefits after settling in sunny climates, according to the study. The # 1 metro area for VA loan growth is Honolulu, Hawaii, where lending activity nearly doubled from last year. Retired military personnel also seek the warmth of the South, flocking to states such as Texas and Alabama.

In addition, the study found that veterans take more VA loans in and around the capital of our country. Here is a list of the top 10 cities for VA loan growth:

  1. Honolulu
  2. Washington
  3. Baltimore, Maryland.
  4. Fayetteville, North Carolina
  5. El Paso, TX
  6. Virginia Beach, Virginia.
  7. Montgomery, Alabama.
  8. Little Rock, Ark.
  9. Huntsville, Alabama.
  10. San Antonio, TX

MORTGAGE REFINANCES GROW IN SECOND DIRECT WEEK – HOW TO GET THE MOST OF YOUR

Veterans don’t just take root in new places; According to the study, many are using their right to refinance existing loans at a lower interest rate with a VA loan.

Mortgage rates are currently low on all VA loans as well as regular mortgages, so now is a good time to finance a home regardless of your military status. And with home values ​​rising at a dizzying rate, it may be a good time for borrowers to take advantage of the additional equity capital cashing refinancing

If you are thinking of buying a home or refinancing your current mortgage, you should explore your options. by visiting the online lending platform Credible.

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Eligibility Requirements for VA Refinancing and Home Loans

Obtaining a VA loan is similar to obtaining a regular mortgage as long as you qualify for the services. Here VA loan requirements for military service and reserve:

  • You have served on active duty for at least 90 consecutive days during wartime, or 181 days in peacetime, or less if you were fired due to a service-related disability.
  • You served 24 months of inactive service during the 80s or 90s, or less if you were laid off due to a service-related disability.
  • You are the surviving spouse of a veteran who died in the line of duty, a missing person or a prisoner of war.
  • You have served in the National Reserve or National Guard with 90 consecutive working days or 6 years of service.

When you apply for a VA loan, you need to provide a Certificate of Conformity (COE) so that the lender knows you are eligible for this program. Your COE may be a copy of your leave documents or a signed service statement, depending on your military status.

As with traditional mortgages, a VA loan requires you to purchase a residential home that meets the minimum property requirements. To validate the value of a home, you will need a VA certification.

STUDENT LOAN OPTIONS FOR US MILITARY MEMBERS, VETERANS

It might make sense to take out a regular mortgage

While the advantages of a VA home loan are significant, it is important to consider the disadvantages. VA loans can only be used to buy a primary home, so you cannot use it to buy a second home. Vacation home or investment property. Plus, VA financing fees can add thousands to the value of your mortgage.

If you decide to take a regular home loan instead, you can only contribute 3%. And since then mortgage rates are close to historic lows, you will probably get a low interest rate without even taking out a VA loan.

Military veterans must exhaust all financing options when buying a home, so it is important to check mortgage offers from multiple private lenders and loan types. You can prequalify for a regular mortgage on Credible in just a few minutes to see offers tailored for you without affecting your credit score.

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Have a financial question but don’t know who to contact? Write to the Safe Money Specialist at moneyexpert@credible.com and your question can be answered by Credible in our Money Expert column.

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