Veterans 55 and older looking to buy a new home in Palm Springs, California should consider a VA home loan to finance their purchase. The VA loan program, which has helped more than 18 million veterans and active duty members achieve homeownership, is a progressive lending program that provides extensive and quality benefits that save borrowers money while enhancing the quality of their lives.
Why Should Veterans Choose a VA Loan?
The VA Home Loan Program was created to honor the service of each veteran, including Vietnam, Korean, and WWII veterans, by providing them with the opportunity to achieve homeownership. The Department of Veterans Affairs guarantees each VA loan allowing VA-lenders to provide borrowers with flexible loan terms and benefits which they wouldn’t normally be able to obtain with a conventional home loan.
The VA Home Loan program also offers high loan limits which is highly beneficial for veterans choosing to purchase a home in Palm Springs, California. The warm weather and comfortable living provided by Palms Springs brings the average cost of a home to $210,000, and with a VA loan a veteran can receive a loan of up to $417,000 to cover their costs. Loan limits are even higher for veterans wishing to purchase a home in more expensive real estate areas.
In addition to providing flexible loan terms, competitive interest rates, and high loan limits, VA home loans also offer benefits such as:
• zero down payment
• no mortgage insurance requirement
• regulated closing costs
How Do I Qualify for a VA Loan?
The VA home loan program has no income or credit requirements making homeownership accessible to nearly every veteran. In fact, 80% of all veterans and active duty service members who have secured a VA loan would not have been able to obtain a conventional loan. To be eligible for a loan through the VA Home Loan program, veterans residing, or wishing to reside, in California must meet one following initial requirements:
• Served 181 days on active duty or 3 months during war time
• Served 6 years in the National Guard or Reserves
• Be the spouse of a service member killed in action
A Certificate of Eligibility must also be presented by veterans and active duty service members who meet the initial guidelines. A VA-approved lender may be able to aid potential borrowers with obtaining their Certificate of Eligibility should they not have it.
Although the VA home loan program has no credit requirements, most VA-approved lenders will require a credit score of at least 620 to secure financing.
This post was written by James Kelley of VA Benefit Blog http://www.vabenefitblog.com/ . A law school student at the University of Missouri, James Kelley works to educate the public on government financing options for home purchases. He is a co-founder of Military Basebook, a facebook application that helps connect military members based on where and when they served.