A few years ago almost all home loans were conventional loans. It was common to have no money down for home loans before the financial crisis, and mortgage rendered down. Very few borrowers would like to apply for FHA or VA home loans if products like 80/20′s didn’t have mortgage insurance.
The financial attitude today is to a large extent different. After the start of foreclosures, short sales, and declining home prices, banks realized that a 100% financing for New Mexico Homes was a bad idea. Potential borrowers need to have something at risk. As Americans have a hard time saving up for enough money for real estate down payment, the housing market also is slowing down. Still, a no money down loan opportunity awaits specific qualified borrowers. VA Home loan is one of these programs.
Veteran’s who want to buy a house should apply for a VA loan. It is one of the few available loans that truly offer 100% financing. Basically, if you served active, full time, military service for at least 180 days, you can probably qualify for the VA home loan. The loan program also qualifies the spouses of the deceased veterans.
The requisite debt to income ratios is very liberal on VA loans. People can qualify for VA home loans with up to a 50% debt to income ratios. No monthly mortgage insurance is what makes VA home loans different and more affordable than FHA loans. It has an upfront mortgage insurance of 2.15%, slightly less than USDA rural housing loans, but more than FHA loans. The interest rate for conventional and FHA rates are almost the same.
The mindset for issuing loans through the veteran’s administration is different than issuing loans for other New Mexico mortgages. The VA home loan aims to help those who serve the country have a home. Other loan programs are very careful that they only give loans to well qualified buyers. With VA home loans, income, employment, and credit requirements are not nearly as strict as compared to that of FHA and conventional loans.
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