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VA loan interest rates and determining home affordability

Veterans are more likely to be homeowners than the non-veteran population. According to Trulia, this is thanks in part to low VA loan interest rates and other incentives. Veterans Affairs mortgages offer a combination of benefits, making it a very advantageous program for veterans, active military, reservists, National Guard and eligible spouses who qualify.

Military mortgage interest rates and loan limits

VA loans offer military mortgage rates that are lower than traditional mortgages and can allow veterans to borrow up to 100% of the property’s value. They also provide the unique advantage of no required private mortgage insurance. For eligible homebuyers, qualifying for a VA loan can also be easier than other mortgage financing programs. With no down payment, low credit score and flexible income requirements, the VA loan program helps many of our military members find a place to call home.

VA loan limits are the amount a qualified Veteran may be able to borrow without making a down payment. When Congress extended the benefit of VA loans to eligible veterans seventy-five years ago, the maximum loan guaranty was $2,000. Times have certainly changed. For loans closing January 1, 2019, through December 31, 2019, the loan limit for most cities is $484,350. If you’re purchasing in a more expensive area, the VA extends its maximum loan limits. View 2019 loan limits by county.

In 2020, military service members will have even more borrowing power when a new law takes effect, eliminating VA loan limits.

Five steps to determine home affordability

Just because you’re eligible for the maximum loan limit doesn’t mean buying a home at that price is the best option for your financial situation. These five steps will guide your military home buying process and help you determine how much house you can afford with a VA loan.

At Guild Mortgage, we’re honored to assist the veterans who take advantage of all that the VA loan program has to offer. We are also proud to hire members of the armed forces after their time in the service has come to an end. At our headquarters, you will find quite a few veterans walking the hallways. Watch our employee spotlights on life at Guild after the military.

Want to learn more about VA loans? Find your local loan officer or visit our VA loan page.

The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply.

Where Veterans Live – Trulia

VA loan history 101: From World War II to today’s benefit – Army Times

VA loan limits repealed: Veterans now get jumbo loans with zero down – The Mortgage Reports

What Do Lenders Look at When I Apply for a Mortgage? – Home Buying Institute

By |Published On: November 11th, 2019|Categories: Mortgage 101, Products and Programs|

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About the Author: Guild Mortgage

Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Mortgage Company is a nationally recognized independent mortgage lender providing residential mortgage products and local in-house origination and servicing. Guild’s collaborative culture and commitment to diversity and inclusion enable it to deliver a personalized experience for each customer. With more than 4,000 employees and over 250 retail branches, Guild has relationships with credit unions, community banks, and other financial institutions and services loans in 49 states and the District of Columbia. Guild’s highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, down payment assistance programs and other specialized loan programs. Guild Mortgage Company is a wholly owned subsidiary of Guild Holdings Company, whose shares of Class A common stock trade on the New York Stock Exchange under the symbol GHLD.