Buying With A VA Home Loan in Tucson or Sierra Vista


 

By Joseph Small
 
A-10 Plane There are many benefits to purchasing with a VA home loan in Tucson or Sierra Vista, Arizona. But first, a little history. In 1944 the U.S. Congress, under the Servicemen’s Readjustment Act, created the Veteran Administration Home Loan Guaranty program. Under this program, VA guaranty home loans are made by lenders and are guaranteed by the U.S. Department of Veteran Affairs to eligible active military, National Guard and Reservists, as well to Veterans for the purchase of a home. To date, this program has help more than 19 million individuals who have served in the military to become homeowners.

So who is eligible for a VA home loan? Those who might be eligible have to be on active duty status or received a discharge which was not dishonorable. Service members who were on active duty for 181 days or 90 days during peacetime or wartime, respectively, may be able to get a VA loan, as may Reservists and National Guard members who served for at least six years. Spouses of service members who died in the line of duty or because of a service-related injury may be eligible for VA loans. There is a new bill currently being proposed to help Surviving Military Spouses

There are many benefits to purchasing with a VA home loan mortgage. One of the biggest benefit would be the option for zero down payment or 100% financing. You can put money towards a down payment, if you choose, but in most cases it might not be required.

Another benefit is the no private mortgage insurance (PMI). Private mortgage insurance (PMI) is often a monthly expense seen in conventional home loans with a loan-to-value of greater than 80%; however, VA financing does not have PMI, which lowers monthly payments when compared to traditional mortgages. Because VA mortgages are guaranteed by the Veterans Administration, the mortgage interest rates are very comparable to conventional home loans.

However, the VA does have a funding fee that will be applied towards your loan. This can be rolled into the VA loan or can be payed by the borrower at settlement.

The VA loan limit in Tucson and Sierra Vista, and throughout Arizona, is $417,000. However, VA home loans can be guaranteed up to $1,000,000. If you plan to purchase above the $417,000, then you will be required to put down an additonal 25% of every dollar over the $417,000 – up to a million. Example: You want to buy a house in Tucson that is selling for $517,000. Because the VA only will guaranty zero down payment on home loans in Arizona up to $417,000, you would have to put $25,000 down ($517,000 – $417,000 = $100,000) X 25% = $25,000.

If you think you might qualify, then click here: Apply Now

Note: All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice.
 

Joseph Small and his team at Guild Mortgage Company proudly serves Active Military and Veterans in Tucson, Sierra Vista, Vail, Sahuarita, Green Valley and Nogales Arizona with their VA loan purchase and refinance needs. We are your trusted source for all your VA home loan mortgage needs! Give us a call today (520) 303-5620.


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