VA home Loans
Ohio
The Department of Veterans Affairs provides specific benefits to military personnel and their families, including the VA home loan program. Through this initiative, active service members, veterans, and surviving spouses can pursue homeownership in Ohio with more favorable terms than conventional loans.
How does this work? The Department of Veterans Affairs ensures these VA loans so banks, credit unions, and private lenders can offer looser loan approval requirements. As a result, borrowers can apply for less expensive home loans. Since the government covers the risk, more qualified borrowers in the Buckeye State can achieve their dreams of homeownership.
VA Home Loan Benefit
If you plan to borrow an Ohio VA loan for your home purchase, you have several advantages over those using conventional home loans or other mortgage products. Here are some benefits of the VA loan program for qualified borrowers.
No Down Payment Required
When most people buy homes, they have to save up money for years to cover a down payment. The minimum down payment is often 3%, though a conventional lender usually wants to see a borrower put down 20%. If you are a veteran, active service member, or surviving spouse, there is no down payment requirement for a VA loan. The median sale price of an Ohio home is currently $259,100. Therefore, avoiding a down payment of 3%, which would equal roughly $7,800, would save you a lot of money.
No Private Mortgage Insurance Premiums
You must pay private mortgage insurance premiums if you do not put a 20% down payment with a standard loan. However, since the VA provides insurance on every VA loan, you do not have to pay any mortgage insurance even if you do not put forth a down payment. This makes the cost of buying a home far more affordable.
Competitive Interest Rates
The interest rate on a home loan affects your monthly mortgage payments and the total loan amount you will pay. The higher the interest rate, the more expensive the loan is. VA loan lenders can offer more competitive interest rates because of the reduced risk, so you will end up paying less each month and over the lifetime of the VA loan.
Flexible Credit Requirements
The VA does not set specific credit score requirements for VA home loans. Instead, each lender is left to decide what credit score minimums are in place. Generally, there is flexibility in your credit score depending on the lender, but many will require a credit score of at least 620.
No Prepayment Penalties
Paying off a conventional loan early often results in prepayment penalties for the borrower. Because of these extra fees make what should be a positive thing more burdensome. A VA home loan has no penalties for paying your loan balance early, so lump sum payments will not hurt you financially. Plus, if you want to pay off the entire VA loan balance early, you can do so without worrying about hidden fees.
Assistance for Struggling Borrowers
The VA wants to help veterans, active service members, and surviving spouses purchase and keep their homes. It is a small act of gratitude for those who have made sacrifices for the country. The VA will assist borrowers struggling to keep up with payments on their VA home loans. This could be financial assistance as well as counseling services for homebuyers.
Eligibility Requirements for VA Loans in Ohio
Applying for a VA mortgage is an excellent option for veterans, active service members, and surviving spouses. However, past service does not guarantee eligibility for a VA home loan. You must meet one of the following criteria:
181 days of service during peacetime
90 consecutive days of service during war
Served more than six years in the National Guard or Reserves
Active spouse of a service member who died in the line of duty or because of a service-related disability
You must also be able to present a Certificate of Eligibility to the lender to demonstrate that you meet the minimum requirements for a VA home loan. You can obtain this Certificate of Eligibility from the VA online or via mail.
The VA Loan Process
Pride Lending specializes in helping LGBTQ+ and minority borrowers research their financing options and find homes. This includes veterans, active military service members, and surviving spouses. You can go through the following steps to apply for a VA loan.
Apply for the Certificate of Eligibility – You can obtain your COE directly from the VA, which is necessary to complete your VA loan application.
Examine your finances and eligibility – Analyze your budget for upfront costs, monthly payments, and other factors that will affect your finances when you apply for a VA mortgage and ensure you meet the service requirements.
Find an Ohio lender – Pride Lending will provide excellent customer service and a streamlined online application process.
Shop for your home – Pick a real estate agent if desired and start looking at homes.
Await final approval - Once you make an offer on a home, your Ohio VA loan will be finalized. Our underwriting process is flexible, so you can get into the home you want as soon as possible.
Closing day – When closing day arrives, your loan officer will ensure all documents are signed, and you will receive your home loan for the purchase.
VA Loan Limits and Funding Fees
The VA loan limit in the past determined how much a person could borrow without requiring a down payment. However, recent legislation has removed this limit on VA loans, and anyone with a full entitlement can borrow as much as they want for a home in Ohio, depending on the lender they choose.
When you take out an Ohio VA loan, one of the closing costs is the VA funding fee. This fee helps compensate for the zero down payment requirement on VA mortgage programs. The funding fee amount may depend on the size of your down payment, and it can be waived in some cases, such as for disabled veterans. The funding fee also depends on your service history, but it can be rolled into your monthly payment structure if desired.