Buying a home is never easy. But if you’re an active member of the military or a veteran, a VA loan can make buying a home in Albuquerque a lot easier.
VA loans were created to help more veterans buy a home. With flexible lending requirements and low interest rates and closing costs, VA loans bring the dream of owning a home in reach of more military members in Albuquerque. This big bonus of VA loans is that they don’t require a down payment or mortgage insurance. That’s a benefit that can help you save quite a bit of money over the years.
VA loans are a benefit to qualified veterans and active military service personnel – including Coast Guard and National Guard members.
You’re probably eligible if one of these is true:
- You served 90 days of active duty during wartime
- You served 181 days of active duty during peacetime
- You served six years in the Reserves or National Guard
- You are a surviving spouse of a service member who died in the line of duty or as a result of a service-related disability.
What documentation do I need?
- DD214 – Discharge Certificate
- Certificate of Eligibility
Once you have your certificate of eligibility or COE, you can apply for a VA home loan.
What kind of house can I buy?
You can buy, build or renovate a home or refinance your current home loan. The property must be your primary residence and includes single-family homes, condos, modular housing, and some multi-unit properties (provided you live in one of the units). In most parts of the country, you can purchase a home worth up to $510,400. Areas with higher-value properties have higher limits.
You cannot buy a vacation or investment property with a VA loan.
How does a VA-backed home loan work?
VA home loans are issued by private lenders and are guaranteed against default by the U.S. Department of Veteran Affairs in case the borrower is unable to make monthly payments. This guarantee enables lenders to offer VA loans with exceptionally attractive terms to borrowers.
Do I need to pay private mortgage insurance?
Most people who buy a home in Albuquerque and put less than 20% down have to pay private mortgage insurance (PMI), which protects lenders from the risk that you’ll default on the loan. With a VA loan, however, mortgage insurance is not required. You’ll still need to pay a one-time VA Funding Fee, a charge that helps defray the costs of the program and make it sustainable for the future. This amount varies, depending on the amount of the down payment and military category. This fee can be rolled into the loan amount and waived entirely for those with service-connected disabilities.
Can I use my VA loan benefits more than once?
Yes, you can use your full VA entitlement over and over again as long as you pay off the loan each time.
I filed bankruptcy several years ago. Am I still eligible?
Service members with a history of bankruptcy or foreclosure can still secure a VA loan.
Benefits at a Glance
- No down payment required
- Flexible credit and qualifying guidelines. You don’t need to have perfect credit to qualify
- Lower interest rates – typically well below most conventional loan options
- No monthly mortgage insurance
- Finance the funding fee
- Seller can pay up to 4% closing costs
- Gift money can be used for closing costs and pre-paid items
- No pre-payment penalty
- 100% cash out refinance, including the funding fee: Use your home’s value and pull cash out to pay off debt, make repairs to your home, remodel or spend otherwise.
If you’re an active military member or veteran and want to make the dream of buying a home in Albuquerque a reality, contact us today. We have decades of experience helping our heroes find the perfect home in Albuquerque.
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