There’s no limit to your purchasing power in 2020! Hawaii is home to many active and retired service members. If you’re one of them and you want to own a home in Hawaii, then it might be easier than you think. It’s important to know your benefits when it comes to purchasing a home with a VA loan.
As we approach a new decade, it’s a good time to set goals and educate yourself about the VA loan. This will help you become aware of your purchasing power. The VA loan is one of the very few loan programs that allows the purchaser to borrow 100% of the home’s purchase price. That’s ZERO down payment! Not only that, but this year the VA loan has no limits! Literally! A new bill has been signed into law effective January 1 lifting the limit on the VA borrower.
This blog will outline for you what the benefits of a VA loan are and help you find out if you qualify.
What Are The Benefits Of A VA loan?
No Down Payment
Normally lenders require at least 3-10% of the purchase price as a down payment for a buyer. For a $400,000 home, that is a savings of $12,000-$40,000!
Easy To Qualify
If you are eligible for a VA loan, then it’s easier to qualify for it than a conventional loan specifically because there are less restrictive credit score and debt to income requirements.
No Monthly Mortgage Insurance
If the down payment is less than 20%, a lender requires Mortgage Insurance that can be an added monthly expense, sometimes up to hundreds of dollars. VA loans don’t require Mortgage Insurance.
Your savings as a veteran or on active duty are great when you take advantage of the VA Loan! Generally, closing costs can be 1-2% of the purchase price. Additionally, there is what’s called a funding fee. VA loans are exempt from many fees. It is very important to get with a knowledgeable lender who can advise you about your closing costs and fees.
Want To Know More?
Contact me and I can put you in touch with a lender professional who can help get you qualified today!
Or join our upcoming seminar on January 25 to find out more!
John Vaughn
May 4, 2020
What are the licensing requirements if I move to Hawaii? I am a currently licensed in Texas. I have been in the Mortgage Industry for 30+ years.