If you currently or previously served in the U.S. military, you may be eligible for a VA home loan in Las Vegas to buy your dream home! The VA loan is designed exclusively for individuals who have served the country. A VA loan comes with its own set of terms and conditions, as a loan officer can explain.
Who is eligible for a VA loan?
VA loans are available for current and former U.S. military members. VA loans are designed to help military members and their families. The U.S. Department of Veterans Affairs administers VA loans. They are offered to prospective homebuyers who meet the qualifying criteria nationwide and in Las Vegas. No matter where veterans and active military members choose to buy their homes, VA loans make home purchases less stressful and more affordable.
What are the benefits of a VA loan?
If you qualify for a VA loan based on current or past military status, mortgage lenders in Las Vegas will gladly explain all the benefits of this particular loan. One appealing feature of a VA loan is that compared to traditional loans in Las Vegas, the money you need to spend for a down payment is much lower. In fact, you can quite often get a 0% down payment rate or have a down payment requirement in the single digits! The interest rates on a VA loan may also be lower than a conventional loan, which is advantageous, as interest rates can substantially add to your loan payment over time. Another excellent benefit of a VA loan is that you do not have to pay for mortgage insurance each month. Mortgage insurance is required for riskier loans with lower down payment requirements. Still, those insurance payments only apply to loans administered by private lenders rather than the U.S. government, which finances mortgages for veterans. The VA is responsible for setting the conditions for VA loans and guarantees part of the loan amount. However, the lender provides financing for the property that a veteran or military member wants to buy.
VA Loan Requirements
Although VA loans come with generous provisions, people who are interested in getting a loan through this route must still get pre-approved by their chosen lender. Fortunately, the process of obtaining a VA loan is virtually the same across the country. However, the VA has more specific requirements for applying for a loan in a few places, including Las Vegas. Mortgage lenders in Las Vegas are available to tell you about the specific loan application requirements for prospective homebuyers in the area. In Las Vegas, the combined value of optional items chosen by a veteran loan applicant cannot exceed 15% of the reasonable value for the property’s base plan type if it is listed on a master appraisal. Along with this specific requirement, it’s also a good idea to ask about other requirements that may affect obtaining a VA loan in Las Vegas, including environmental hazards, insect inspections, and energy efficiency standards. Borrowers must agree to meet all the conditions of the applicable loan in order to purchase a house, no matter what kind of loan they choose to get.
What are the application requirements?
As with any loan, certain application requirements exist for those who want to get a VA home loan in Las Vegas. If you want to get a VA loan, there are a few steps to take to apply. First, you’ll need to get a certificate of eligibility (COE). This certificate verifies your military status and your eligibility to apply for a VA loan. This letter is one of the first things that mortgage lenders in Las Vegas will want to see when they are evaluating potential loan candidates. A COE is obtainable for people in seven branches, including the Army, Navy, Air Force, Coast Guard, Marines, Public Health Service, and National Oceanic Atmospheric Administration (NOAA), along with the family members of any of those individuals. To provide proof of service, you may need to present a history of retirement or current benefits, separation or discharge papers, or signed statements confirming that you do or previously served the country. In some cases, people may still be eligible to obtain a COE and therefore qualify for a VA loan if they do not meet the traditional qualifying criteria. If the applicant left their military service because the number of active forces was reduced, they had a medical condition, or due to other circumstances, approval may still be granted for a COE.
Do disabled veterans get additional benefits?
If you are a disabled veteran, you may, in fact, get additional benefits from VA loans in Las Vegas. Disabled veterans may be eligible for additional benefits, including property tax exemptions, adaptation grants, and exemptions from funding fees. If you have a disability that affects mobility or vision, you may also qualify for other grants called specially adapted housing (SAH) grants.
How to Apply for a VA Loan
If you think that a VA home loan in Las Vegas sounds appealing and you meet the basic requirements, the next step is to submit an application.
The steps required for an application include the following:
- Obtain a COE
- Determine how much you can pay
- Submit an application
- Consult a professional
First, you will want to get a COE to prove your military status, which you can do through the VA website. Secondly, you should see how much you can afford to spend on a home, including the upfront cost along with all closing costs and related fees. A mortgage calculator is a quick and easy tool to use to help you figure that out. Finally, you can submit your loan application online for review. If any questions arise during the process, you can consult a professional to help answer your questions and walk you through the process.
What documents are required?
When you apply for a VA loan, you will need to supply certain documents. One primary requirement is verifying your identity, which you can do through a government-issued ID such as a driver’s license, passport, permanent resident card, or other state-issued ID card. Tax documents are also usually required. A lender may ask to see a two-year history of your employment and income. Bank statements may also be required for the past several months. If you are currently working, you may need to send in paystubs for the past 30 days. A lender will want to see your credit score via a credit report, and you may be asked to show a list of monthly debts as well that shows a lender how much you spend each month compared to your income. This shows the lender your debt-to-income (DTI) ratio, which in turn helps determine how much mortgage you can afford to take out. A lender may ask about other fees as well that don’t necessarily show up on the report, including property taxes, homeowners association (HOA) fees, and homeowners insurance.
Surviving spouses may also be eligible for a VA loan, provided they submit a Form DD214, along with their marriage certificate and their military spouse’s death certificate.
Contact a loan officer today if you have questions about applying for a VA loan in Las Vegas!
