Should Veterans Rent or Buy a Home?

veterans rent or buy a homeAs a veteran or active duty military member, you’ll likely face the decision of whether to rent or purchase your own home. Low interest rates have made home buying a more appealing prospect, and VA home loans help veterans achieve their home ownership dreams.

Is purchasing a home the right decision? There are a few features of VA home loans that support owning a home rather than renting.

You’ve probably already heard of VA home loans, and you may be aware of some of the benefits of these loans compared to traditional mortgages. Here are a few unique VA loan benefits that make buying a home the most logical choice for most veterans and many active duty service personnel:

  1. Relaxed Qualifying Terms. It’s easier to qualify for a VA loan than a conventional loan, making home ownership more within reach for many veterans. According to VA guidelines, your debt-to-income ratio must not exceed 41%, and the VA does not require a minimum credit score. If you’re able to prove that you can pay your mortgage, you’re likely to be approved for a VA loan even if your credit score is less than perfect.
  2. No Down Payment. Huge down payments stand between many would-be homeowners and the homes of their dreams. As a veteran or active duty military member, you can buy a home with $0 down. Considering that most landlords require a significant security deposit, buying your own home could actually require less money upfront.
  3. Opportunities to Upgrade. When you purchase a home using a VA home loan, it’s yours to improve. If you plan on making “green” upgrades, you may be able to roll the cost into your loan. Borrowers can qualify for up to $6,000 to make their homes more energy efficient.

As a home owner, the money you spend on your home is an investment. When you rent, you’re spending money monthly on something that will never be your own. For most veterans, purchasing a home is a much better use of money, and VA home loans make home ownership more obtainable.

If you’re looking to buy a home in Boulder, I can help. As a Veteran Realtor and former member of the US Navy, I understand the unique challenges and benefits of homeownership for veterans and active duty military personnel. To learn more and get started on your Boulder home search, contact me today!

Posted on July 10, 2017 at 3:45 pm
Terri Cox | Category: Buying, Uncategorized, Veterans

Advantage of VA Home Loans

va home loansFor veterans, active duty service members and military families, the VA Loan program is the most powerful mortgage option on the market. These government-backed loans are much more flexible than other lending options, and they have opened the door to homeownership for countless veterans – including those who may struggle to obtain financing through traditional banks and lenders.

Working with an experienced veteran Realtor is the best way to take full advantage of the many benefits of the VA Loan program. Not sure if a VA loan is right for here? Here are some of the many perks!

  1. No Down Payment. Coming up with a huge down payment is an insurmountable obstacle for many would-be homebuyers, especially service members who are always on the move. If you qualify for a VA Loan, you can finance the entire cost of a home without putting down a single penny. To put the savings into perspective, purchasing a $250,000 home using a traditional mortgage that requires 10% down would require a $25,000 dollar down payment. Need to put down 20%? You’re looking at $50,000. If you qualify for a VA Loan, that amount could be $0!
  2. No Private Mortgage Insurance Requirement. Most conventional lenders require borrowers to pay for private mortgage insurance, or PMI. Since the federal government backs VA Loans, though, there’s no need. The government assumes the risk that would normally be covered by the PMI. This can lower your monthly payments by hundreds of dollars every month.
  3. Competitive Interest Rates. VA Loans have some of the lowest interest rates in the business. Interest rates are based on the risk assumed by the bank, but since the federal government backs all VA Loans, that risk is greatly reduced, resulting in lower interest rates. Reducing your interest rate by even a single percent could save you thousands over the life of your mortgage.
  4. Relaxed Credit Requirements. Lenders have implemented stricter credit requirements over the last few years. While traditional lenders require a credit score of around 740, VA lenders are usually willing to accept applicants with scores as low as 620.

Veteran Realtor in Boulder

As a veteran Realtor in Boulder, I have several years of experience in helping veterans, active duty service members and their family members purchase the homes of their dreams. I am a United States Navy Veteran, and I’m passionate about helping my brothers and sisters on their journey to homeownership. To start your home search with a veteran realtor, please call 720-548-1738.

Posted on July 10, 2017 at 3:35 pm
Terri Cox | Category: Uncategorized | Tagged ,