VA Loan Savings Requirements
VA Loan Savings Requirements
Down payment requirements: Since this mortgage is guaranteed by VA, the minimum down payment required is 0% of the sales price. Veterans are allowed to put money down on the purchase (which subsequently reduces the required funding fee). No cash reserves are required.
Benefits of VA Home Loans
No Down Payment VA loan limits increased up to $417,000!
As of January 1, 2006, qualified Veterans and Active Duty military can obtain a loan of up to $417,000 or $625,500 in high cost areas- with no money down.
- There is zero down payment required when purchasing a home.
- The VA mortgage loan is guaranteed with no money down for any loan up to $417,000.
- If you have bad credit, you are likely to get a much lower rate with a VA loan compared to a conventional loan.
- There is no monthly Mortgage Insurance required for a VA home loan.
- VA home loan payments help build your personal wealth. Unlike rent payments, a portion of the VA home loans payment goes toward building equity in the house.
- As you build equity in your VA home, you will find it easier to qualify for other loans for new cars, education and better interest rates.
- The tax code is generous to VA home owners.
- Not only can you deduct interest on your VA home loan payments, but you can avoid taxes on the profit from selling your home, if you buy another home of equal or greater value within two years of the sale.
- IRS rules also allow you to avoid taxes on up to $250,000(or $500,000 married filing jointly) of profit on the sale of your VA home.
- VA mortgage loans are often assumable.
- The more you know about VA home loans program, the more you’ll realize how easy it is to buy a home and start building your personal financial wealth.
If you are still renting, now is the time to take a serious look at VA home ownership. while interest rates are still at record lows.
Here are some more facts.
- $70,000 – the average homeowner’s equity.
- $50,000 – average low-income homeowner wealth in 2001.
- $7,900 avg. low-income NON HOMEOWNER wealth equity in 2001.
- An overwhelming 97% of homeowners own at least some equity in their homes.
- Among Lower income households – home equity is 80% of their entire wealth.
- For Hispanics, home equity is 63% of their entire wealth.
- For Afro-Americans – home equity is 52% of their entire wealth.