One of the biggest decisions that many couples face when they are starting married life together is where to live. Buying a home to share can be expensive. You need a place that is going to be suitable for at least a few years. This may involve buying a property that is big enough to accommodate a family.
If you have both been living with parents, or have been renting property, you will not have any property equity to use for a down payment. Given the costs associated with a wedding, you may have also struggled to save money for a place to live. You could rent at first, but there may be another option. If either of you is a veteran, you may be able to get a VA loan.
How can a VA loan help?
If you do not have any savings put away towards the 20% that you would normally have to put down up front when buying a home, a VA loan may be the answer. These loans allow you to buy a property without having a down payment. This means that you are not stuck in a cycle of having to pay rent and try to save for your own home, at the same time.
Applying for a VA loan can also help you to avoid the significant rises in interest rates that are causing problems for many potential house purchasers in the US. Loans from the VA scheme are government backed. This means that although private lenders provide the loans, they are guaranteed by the Department of Veterans Affairs.
This guarantee means that lenders are not at risk of losing all their money if a borrower defaults on their loan payments. The result of this is that lenders are prepared to offer more affordable rates for loans. This has a positive effect on your ongoing mortgage payments. This is an important consideration, given that budgeting for married life can be difficult.
Do you qualify for a VA loan?
It’s important to note that not every veteran is entitled to receive a VA loan to purchase a property. There are still considerations which need to be taken into account by the lender. You can check out your eligibility today! Generally, there are a few factors which may have an effect on this eligibility.
- Credit rating. Lenders will check your credit rating when they are deciding whether to award you funding. Normally, a score of 620 or higher is required in order for your application to have a chance of succeeding.
- Your application will give information to the lender which helps them to determine how much you can afford to borrow.
- Ability to repay. You always need to show that you are able to repay a VA loan before an award is made.
If you do qualify for a VA loan it can be an affordable way of purchasing your first home together as you begin married life.