Buying a Las Vegas Home with a VA Loan
There are a number of different home loans in Las Vegas that you can consider to make buying your dream home more realistic. Of all the home mortgages available, some are geared towards specific segments of the population. One specialty loan available is the VA loan, a loan set aside for veterans to help them purchase a home. A Veteran’s Administration home loan, or a VA loan, allows former and current service members to purchase or refinance a home. If you are a service member looking for a loan that can help you out, it’s time to learn more about a VA home loan in Las Vegas.
How to Buy a Home With a VA Loan
A VA home loan is a loan administered by the Veterans Administration. The loan is available to service members, veterans, and surviving spouses who are eligible for the loan. It is designed to help people who have served the country afford a home that they want to live in. Along with simply serving in the military, individuals must meet eligibility criteria to qualify for the loan.
A VA loan is categorized as a non-conforming loan. It is classified as such due to the fact that it has a lower credit requirement than other types of home mortgages. Additionally, there are several distinct advantages with this type of loan that you don’t get with other mortgages, including lower interest rates, less stringent borrowing requirements, and you generally don’t have to make a down payment when you close on a home. Additionally, you don’t have to deal with monthly mortgage insurance payments when you get VA home loans in Las Vegas. (Here is an outlook of the Real Estate market in 2022 in Las Vegas.)
Why Choose a VA Home Loan?
There are several distinct advantages to the VA loan, including that it often requires zero down payment. Additionally, VA mortgages let private lenders issue home loans with more favorable rates. Even though private lenders distribute the loan, the VA ensures part of the loan so that the Administration pays the lender in case you default on your mortgage payments. This assurance allows lenders of VA mortgages to set favorable terms for the eligible service member or their surviving spouse, including low-interest rates and minimal down payments or even no down payment at all. Along with not having to worry about a down payment, eligible individuals can also benefit from lower interest rates than are provided with conventional home loans in Las Vegas.
Requirements for Obtaining a VA Loan
As with other kinds of home loans, people who want to get a VA loan should be aware that there are some requirements and limitations with VA loans in Las Vegas. For starters, VA loans available in Clark County are limited in the amount to $484,350. Additionally, as with any other kind of loan, documentation is essential when you get a VA loan. The lender will want to see all of your financial records and history, and you’ll want to be able to document any source of income that comes into your bank account. Additionally, your total income should match what you state on your 1099 and W2 forms. If you get income from employment, you will also want to provide pay stubs that show how much money you make in income. If you have debts that you have been paying off to date, it’s important to include that information so that you have a better chance of qualifying for a loan. If you have outstanding debts, be sure to pay them on time so that you don’t get penalized or disqualified from obtaining a VA loan.
What Kind of VA Loan Can You Get?
There are several different kinds of VA home loans in Las Vegas available to eligible service members and their surviving spouses, including:
- Cash-out refinance mortgages
- VA purchase mortgages
- Native American Direct Mortgages
- Adapted Housing Grants
Ideally, you should speak with an experienced loan officer to find more about the available home loans in Las Vegas and determine which ones you might qualify for.
Qualifications for a VA Loan
Individual lenders can establish their own requirements for determining the qualifying criteria for a loan. However, even though some requirements are necessary to obtain a VA loan, the qualifications you must meet are more relaxed compared to other types of mortgage programs. You may be surprised to learn that simply being involved in the military does not mean that you automatically qualify for a loan. In order to meet the minimum qualifications, you will need to have served at least 180 days of active service during times of peace, or you must have served at least 90 days during an active war. If you participated in the National Guard or National Guard Reserves, you must have served for at least six years consecutively in either branch, or you must have served at least 90 days if you are under Title 32.
Along with the service member, spouses may also qualify for a loan. The surviving spouse must have lost their partner in the line of duty or as a result of a service-related disability. Surviving spouses generally do not qualify for VA home loans in Las Vegas if they remarry, although there are some exceptions to that rule.
Certificate of Eligibility
A Certificate of Eligibility (COE) shows a mortgage lender that you qualify for a home loan. Proof of service is necessary to get a COE. The proof of COE that an individual submits depends on whether the person is a veteran, active service member, or surviving spouse. People will need to provide specific documentation verifying their status.
What Credit Score is Required for a VA Loan?
Even though you won’t need to make a down payment with a VA loan in most cases, you will still usually need to have a minimum credit score to qualify for a VA loan. However, the good news is that the minimum credit requirement for a VA loan is typically less than the minimum credit score required for a traditional loan. Generally, obtaining a VA loan requires a minimum credit score of 580 on the FICO scale. It is still possible to secure a loan if you have a credit score under the limit, but you’ll want to work with an experienced mortgage broker to help you have a better chance of getting qualified.
Requesting More Than One Loan
Most veterans are not aware that they can request more than one VA loan. VA loans are available for a variety of individuals, including active service members, retired veterans, disabled veterans, and their spouses. Depending on your circumstances, you may be able to get several loans at once. Your VA loans can help you get a low interest rate and even have a zero-down mortgage on your next home. However, be aware that certain fees may still apply, including closing costs. A mortgage broker can work with you to help you negotiate prices and fees with the seller to have the seller pay for some closing costs. If the seller is unwilling or unable to help cover the cost of closing fees, the closing costs can also get financed into the VA loan.
VA mortgages can be quite advantageous in helping qualified individuals buy a home. Contact an experienced loan officer today with your questions and to obtain more information.
