VA Loans
Key Points
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No Down Payment Required!
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Very competitive interest rates
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No Minimum Credit Score
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Recommended Minimum is 620
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Customizable interest rate and loan term
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Down Payment Assistance may be available
*see below for details
The VA Loan program is a unique and invaluable opportunity for eligible veterans and active-duty military personnel to achieve their goal of homeownership. These mortgages are backed by the US Department of Veterans Affairs, which allows Arizona Lending Group to provide a robust array of benefits that are not available with other mortgage options. Let's delve into the advantages of the VA Loan program and how a VA Loan can empower your homebuying journey.
No Down Payment Required
One of the most well-known and significant benefits of a VA Loan is the ability to purchase a home with no down payment. Eligible veterans and active-duty military personnel can take advantage of this benefit to save thousands of dollars. Traditionally, conventional loans require a down payment of at least 3-5%, which can be a financial hurdle for many aspiring homeowners. Here at Arizona Lending Group, we are proud to offer our eligible clients who have served our country a VA Loan with no down payment. It's important to note that there are still closing costs associated with purchasing a home, which can be estimated during a short conversation with one of our experts.
Competitive Interest Rates & No Mortgage Insurance
As we discussed earlier, these VA Loans are guaranteed by the US Department of Veterans Affairs. This additional security allows VA Lenders like Arizona Lending Group to provide more favorable interest rates to our veteran-borrowers than other clients may qualify for, which leads to significant interest savings and a lower monthly payment.
In addition to the lower interest rate and monthly payment, VA Loans do not require mortgage insurance. Typically, mortgage insurance is required on loans where the borrower has less than 10% or 20% of the loan amount as a down payment.
Additional Flexibility
In addition to all of the benefits discussed above, VA Loans offer borrowers a large amount of additional flexibility in qualifications. There is no minimum credit score imposed by the VA, nor is there a strict Debt-to-Income (DTI) limit. While some lenders choose to impose their own limits, the lack of a VA requirement means that most veterans will find that lenders are more forgiving during the underwriting process.
Eligible borrowers can use VA Loans to buy a primary residence, including single-family homes, condominiums, and multi-unit properties. Furthermore, the VA Loan program offers a streamlined refinancing option (VA IRRRL) for those looking to lower their interest rate or shorten their loan term, further enhancing the financial benefits for veterans and active-duty military personnel.