Discount Points – Do VA Loans Include Them?
When deciding to buy a home, you want to get the best mortgage possible for your circumstances. Veterans and service men and women have an advantage in the financing step because they are exclusively eligible for discount points VA Home Loan. The loans are offered by mortgage companies and banks. But the VA guarantees a part of the loan, enabling you to get a loan with better terms than a typical mortgage.
About Discount Points Eligibility VA loans require you to have adequate income, suitable credit, and a completed valid Certificate of Eligibility to establish that you qualify for the benefits of a VA home loan. Lenders ideally prefer that you have a credit score of at least 620. But exceptions can be made with additional stipulations in certain circumstances. You must also intend to live in the home as your primary residence. The funds can be used to buy a home, buy and improve a home, purchase a manufactured home or to build a house. You do not qualify if you have received a dishonorable discharge. The service requirements vary based on dates of service and minimum days of active duty required. Specific information regarding eligibility can be found here.
Benefits of a VA Home Loan
No down Payment – Conventional mortgage companies require buyers to put down at least 20% of the purchase price to avoid having to obtain private mortgage insurance or PMI. For example, if you are looking at a home for $100,000, you would be required to have $20,000 up front on top of other fees.