How Soldiers can build their wealth over time
The key to a soldier building wealth, he must first scout the facts about the VA guarantee home loans.
For starters the VA don’t give loans they guarantee them for a fee, when you obtain the loan from the bank. Here are some of the “basic entitlement” offered to most active duty, reserve or National Guard and veteran service members and even some surviving spouses.
Veterans can borrow up to $417,000 without any down payment for a home so long as it is for their principal residence. (The median home value in the U.S. is currently $182,500.) About 90% of VA guarantee loans have no down payment, the VA says.
And unlike for most lenders, there is no maximum debt ratio, meaning that the monthly mortgage payment can be higher than the typical lenders requirement of no more than 28% of gross monthly income, or exceeding the 43% of total debt-to- income ratio.
There’s also no minimum credit score requirement for a VA guaranty loan, while most home mortgage loans require a credit score of at least 620 for conventional loans or 580 for most FHA loans.
A VA guarantee loan can also be used to refinance an existing loan, contact your financial professional for guidance.