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First time home buyer

First Time Home Buyer – Purchasing With A VA Loan

Purchasing your first home is an exciting accomplishment, and utilizing a VA loan is a great opportunity for first time home buyer veterans.

No Money Down

Conventional loans typically require a borrower to have at least 5% of the purchase price available for a down payment, and that percentage can rise to 15 or 20 percent because of a borrower’s credit score and other credit qualifying requirements.  As a first time home buyer, having that kind of money available for a down payment is highly unlikely.  The VA loan is one of the only loans available that doesn’t require a down payment.

Easier Qualifying Guidelines

Numerous first time home buyers lack a strong enough credit history, which makes it some what difficult to qualify for a conventional mortgage, or an affordable interest rate.  Since a VA Loan is insured by the federal government, it is easier for a credit challenged borrower to qualify for at a competitive interest rate.

Lower Monthly Payments (No Monthly Mortgage Insurance Premiums)

The VA Loan offers the ultra attractive feature for first time homebuyers, or non-first time buyers, that other loan products do not offer over 80% Loan To Value.  That feature is NO PMI (Private Mortgage Insurance), which conventional loans require, and no MMI (Monthly Mortgage Insurance), which FHA loans require.   By not having PMI or MMI included in your monthly mortgage payment will leave more money in your pocket each month, which could make a huge different in your monthly budget for you and your family.

As home loan specialist, we know the home buying process can be somewhat overwhelming for first time home buyers.  Our VA Loan advisors are ready to answer your questions and get the process started.  We can also refer you to a great real estate agent in our network of real estate agent partners.

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