All About VA Loans for Lake Tahoe Home and Condo Purchases
The Veteran’s Administration (VA) loan program is designed to provide home loans with favorable interest rates and low down payments to those who have served their county. In some situation, veterans can even apply to receive 100 percent financing for their home purchase under the VA home loan program. This special program helps to create housing market strength while thanking our nation’s veterans for their service.
How Does the VA Loan Program Work?
While VA loans are guaranteed and backed by the Veteran’s Administration, it’s very important to understand that VA home loans are not actually offered by the government. When an individual takes out one of these loans, the VA promises to pay the lender should the borrower default. Because these loans are government backed, many lenders in the Tahoe-Truckee area feel comfortable offering financing to qualifying vets who are looking to buy homes or condos. The low interest rates and special conditions of these loans are designed to meet the needs of men and women who have served our country.
Potential buyers who plan on using a VA loan to finance the purchase of a Tahoe-area property should be sure to work with realtors and mortgage bankers who are familiar with the market in the area. This is the best way to ensure that you not only get the financing you need, but that you make a wise purchasing decision. If you’d like to buy an investment property or second home, let your mortgage banker know right away so that you can hear about all of your loan options.
Can a VA Loan Work for You?
If you are looking for a home in the greater Lake Tahoe area, you have many financing options. If you’re a veteran, one of your first options should be a VA home loan. Before you start the process of looking for a new home, you should understand these facts about VA loans:
- VA loans are the only widely offered consumers loans that allow for full financing with no down payment needed.
- Closing costs and funding fees for VA loans are either very low or may be waived.
- Individuals who take out VA loans don’t need to pay for mortgage insurance, which must be purchased for most other home loans.
- Lenders can take care of refinancing quickly and easily should interest rates fall and should you be eligible to refinance.
- Only approved, trustworthy lenders can issues VA loans.
Qualifying for a VA Loan in the Reno and Tahoe Area
The VA loans program was established to help those who have served our country. In order to take out a VA loan, lenders must meet eligibility requirements set by the VA. Before approving you for a VA loan, your mortgage banker will determine if any of the following apply:
- You are a veteran who served during or after World War II and were honorably discharged from service.
- You are buying a primary residence for yourself.
- You are the widow or widower of a veteran who died in the line of duty or from a duty-related disability and you aren’t remarried. If your spouse is a POW or MIA, you also qualify.
- You are currently on active military duty.
Potential lenders will also evaluate your overall creditworthiness. While a lender might not turn you down based on a credit score alone, your credit history as a whole is important. Be sure to correct any inaccuracies to your credit report before you apply for a loan.
Securing a VA Loan
For many veterans, the process of applying for a government-backed loan seems downright daunting. However, veterans who work with professional mortgage bankers will enjoy peace of mind while having the freedom and flexibility to choose a home that meets their needs. If you’re considering taking out a VA loan for the purchase of a Tahoe-Truckee home, take time to sit down with a trustworthy mortgage banker and discuss your options. Doing so will ensure that you buy the home that you want on fair financing.