VA Loans Make Transitioning Easier for Arizona Veterans

Guest post by Kevin Pearia~

For those about to retire from military service, the prospect of transitioning into civilian life is both exciting and concerning. Civilian life is often a big change which can make it intimidating at times, however, that doesn’t keep thousands of veterans from successfully doing so while simultaneously pursuing the American dream.

One of the predominant goals of most military members about to retire is that of laying roots. Many military members and their families have been forced to move around frequently throughout their time of service, and upon retirement, are eager to establish a more stable home life by purchasing a home. Unfortunately over the last few years, the lending requirements of conventional lenders have become more strict making it nearly impossible for many interested homebuyers to secure financing.

Veterans, however, have a lucky break thanks in part to the VA Home Loan Program.

What is the VA Home Loan Program?

The VA Home Loan Program was established in 1944 to provide veterans with an affordable and accessible home financing option, and has helped over 19 million veterans achieve their goal of homeownership since the program’s inception. Each mortgage loan provided through the program is guaranteed by the Department of Veteran Affairs, granting military members far greater benefits than they would receive otherwise with a conventional loan.

How Does the VA Home Loan Make Homeownership Easier to Achieve?

The VA Home Loan makes homeownership more easily achievable in two ways – affordability and accessibility. Conventional lending programs have strict lending requirements, often demanding that applicants have a high credit score and a 20 percent down payment to even be considered. For a small home purchase of $125,000, that’s a down payment of $25,000 – not including closing fees and private mortgage insurance. Hardly an expense most people in today’s economy can afford.

Because of the VA’s guarantee, VA-approved lenders are able to make homeownership more affordable by providing eligible borrowers with the option to purchase a home with:

  • No down payment
  • No private mortgage insurance
  • Competitive interest rates and flexible loan terms

VA Home Loans also have high loan limit.  Throughout most of Arizona the limit is $417,000, which allows eligible veterans the ability to secure 100 percent financing for a great home without having to seek additional financing.

Who is Eligible?

Because accessibility is another way in which the VA Home Loan program makes homeownership easily achievable, the program also has incredibly lenient eligibility requirements. In addition to submitting a Certificate of Eligibility, interested veterans must complete one of the following service requirements to be eligible:

  • Have served on active duty for at least 90 days during a time of conflict or 181 days during peacetime
  • Have served for at least 6 years with the Reserves or National Guard

The program does not have any income or credit requirements, but most VA-approved lenders do. In addition to the aforementioned requirements, interested military members should expect to have to present two years proof of stable income as well as a mid-range credit score of at least 620 to obtain a mortgage loan. However, those with a history of bankruptcy and foreclosure have been approved in the past so those interested with questionable eligibility are still encouraged to apply. If you have any questions regarding the VA home loan or the application process, contact your local VA Loan Specialist.

Kevin Pearia is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA home loans.

About Amy Jones Group

Amy Jones is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.