When it comes to home financing, it’s hard to beat the amazing benefits available from VA loans. These government-backed mortgages help veterans, servicemembers and others who have served our county achieve the dream of owning a home. VA loans are funded through VA-approved private lenders and insured through the U.S. Department of Veterans Affairs. Texas is home to many military bases including Joint Base Camp Bullis, Joint Base San Antonio, Fort Sam Houston, Joint Base San Antonio-Randolph, and Lackland Air Force Base. New Horizon Mortgage, Inc. works with closely with veterans throughout Austin and San Antonio to provide competitive rates and terms for VA loans.
VA Loan Basics
VA loans are a type of nonconventional mortgage. All nonconventional loans are sponsored, at least in part, through the federal government. They’re an alternative financing option to conventional loans, which are fully funded and insured through private companies. The Department of Veterans Affairs sponsor VA loans, and there are other types of nonconventional loans like USDA and FHA loans sponsored by other federal departments.
VA loans were first released in 1944 through the VA loan guaranty program to help veterans achieve the dream of owning a home during hard economic times after World War II. Today, they serve a similar purpose in helping to mitigate certain hurdles to homeownership for qualified borrowers, like stringent credit requirements or a large down payment.
VA Loan Limits
The Department of Veterans Affairs will insure loans for qualifying candidates up to certain limits, which vary across the country by county. In Bexar county, those limits are:
- $726,000 for a one-unit property
- $929,850 for a two-unit property
- $1,123,900 for a three-unit property
- $1,396,800 for a four-unit property
It’s important to note that can still secure a VA loan that exceeds these limits; however, you’ll need to prepare to pay a down payment based on a percentage of the difference between the limit and your loan value.
VA Loan Eligibility and Approval
VA loans are available to veterans or servicemembers who have served at least 90 consecutive days of active duty service during wartime, 181 days of active duty service during peacetime, or more than 6 years as a member of the National Guard or Reserves. They may also be available to certain surviving spouses of veterans killed during or because of military service. Some others who have served the country as part of certain organizations or assisted the U.S. military during wartime may also be found eligible. We can quickly determine If you meet the VA loan service requirements and help you obtain a certificate of eligibility (COE), which is a required document for all VA-approved loans.
In addition to obtaining a COE, you’ll need to provide proof of your ability to pay your monthly mortgage payments. The VA does not set forth any credit score minimum requirements, and private lenders ultimately decide who to approve. While credit score approval is flexible, we recommend clients have at least a 620 score to be eligible.
Start the Process Today
If you’re a servicemember, veteran, surviving spouse of one or think you may otherwise be eligible for a VA loan, New Horizon Mortgage, Inc. We offer free consultations to clients in Travis, Williamson, Bexar, Comal, Guadalupe and all Texas counties. New Horizon Mortgage, Inc. makes the VA loan process smooth and easy, contact us today to get started!