If you’re looking to buy a home in Ahwatukee Arizona and want a cheap interest rate a great loan program to look at is a VA loan. Unfortunately if you’re not eligible for a VA loan, you won’t be able to consider this as an option. However, if you are eligible, continue reading to see what kind of homebuying benefits you can get from military home loans.
Since everyone’s worried about getting the lowest payment will start with VA loans having the lowest interest rates available at of most mortgage loan programs. in many cases interest rates for VA loans are well below market rates for the other types of loan programs out there including Fannie Mae, Freddie Mac and FHA.
If you’re tight on money for down payment the VA loan offers mortgages with no down payment. Most other loan programs require at least 3 1/2% down, starting with FHA programs and 5% down for Freddie Mac and Fannie Mae.
Another fabulous feature about VA loans is you don’t have to pay a monthly mortgage insurance premium like you do with FHA or conventional loans. This can add up to significant savings over time. For conventional loans, if you put 20% down, you won’t be paying mortgage insurance either, but many people don’t have that kind of money to put 20% down today’s economy. With FHA mortgages know matter what kind of money you put down you will be faced with a monthly mortgage insurance.
Another great benefit of VA financing is that the underwriting requirements are less restrictive if you’ve had some minor credit issues in the past. If you had past credit problems your VA loan approval will most likely be predicated on whether your credit issues have cleared up or not. With this in mind, you may be else it tell that you can get a VA loan with a lower credit score then you can with Fannie Mae or Freddie Mac.
Lastly, one of the best benefits of a VA loan is the streamline refinance program set up by the VA. This program allows you to refinance your VA loan without getting an appraisal or having to show income and credit information as long as you have kept your mortgage payments up to date. The caveat to this program is that in the current condition of our US housing market most VA lenders are requiring credit reports income documentation and appraisals so you will need to shop around to find a lender which could be difficult. However, in the future, if you get a VA loan now and the market returns to normal it is likely that VA lenders will relax some of their extra requirements and allow this program to return to normal requirements as specified by the VA.