If you’re thinking about buying a home, a VA loan in North Carolina might make it happen. AmeriSouth Mortgage Company is a reliable lending company with low rates, no hidden fees, and great support throughout the loan procurement process. Let’s take a look at what VA loans are as well as some of the advantages they offer that traditional home loans don’t.
Who Can Qualify for a VA Loan?
A VA home loan is a loan for veterans, active duty service members, and some surviving family members as well. VA loans often come with better terms than traditional mortgages and can be easier to apply for. There are specific requirements of eligibility that must be met in order for you to qualify for a VA loan, such as your length of service and other criteria that we cover in a convenient checklist.
If you’re eligible, you can apply for a VA home loan any time during or after your service when you’re looking to buy or refinance a home, as long as the home will be your primary residence. You can also apply for a VA home loan more than once in the event you sell your house and buy another one later on. As always, there are a few exceptions. You can call AmeriSouth Mortgage Company at any time for help acquiring a VA loan in North Carolina.
What Are the Benefits of a VA Loan?
VA loans have benefits that traditional mortgages don’t have, not the least of which being lower interest rates. Since the VA guarantees a portion of the loan, they are less risky for lenders. The guarantee protects the lender. As a result, lenders have more flexibility to offer you a lower rate with a VA loan than they could with other loans.
Another benefit of getting a VA loan as that most people don’t have to make a down payment, which means you can finance 100% of the home’s value. For a traditional mortgage, lenders usually require borrowers to make an initial down payment of at least 20%, and that number can be higher depending on the circumstances. If no down payment is made, the home buyer typically has to pay private mortgage insurance, which can significantly add to the cost of the loan. With a VA loan, you aren’t required to pay mortgage insurance if you don’t make a down payment.
What Can Stop You from Being Approved?
Some circumstances could make it difficult for you to qualify for a VA home loan. There are also some limits on the amount you can borrow without making a down payment. What could make it difficult to qualify for a VA loan? If you have a lot of debt in relation to the amount you earn, it could keep you from qualifying for a loan. If you have a low credit score, it won’t necessarily stop you from getting approved by the VA, but it could keep you from getting approved by a lender. Like other types of loans, the better your credit score, the lower the interest rate you will be offered. To learn more about getting a VA loan in North Carolina, contact AmeriSouth Mortgage Company today.