VA Loan New Mexico
One of the prime advantages of a VA loan is “no money down.” If the buyer can get the seller to agree to pay the closing costs, the buyer can purchase a home with zero down. With the recent Veterans Benefit Act, it is now possible to qualify for up to $417,000 with no down payment. Of course, this is also based on other factors, such as your income, your credit history, and your ability to repay the loan.
A few other advantages of a VA loan include no prepayment penalty against the loan and no need for private mortgage insurance. VA loans eliminate many of the costly fees incurred with conventional home loans, but a few fees remain, such as appraisal fees, recording fees, and compliance costs. You have the option to pay these fees out of pocket, or you may be able to incorporate them into your loan.
As you might imagine, VA loans typically offer lower rates than traditional mortgages and as long as you can prove that you are a U.S. Veteran, you could be on your way to owning your new home.
Being a veteran doesn’t automatically qualify you for a VA loan. Your credit history is still important. The lender will check your credit history just like with any other loan, but even with bad credit you may still qualify with a down payment. This will all depend on what the lender discovers upon reviewing your credit history. If your credit isn’t perfect, you may still qualify for no money down on a VA loan. Typically, it is easier to qualify for a VA loan than a traditional loan.