Hi everybody, this is Ruthie the realtor. And today I want to tell you how to save $33,000 with a VA loan and One of the biggest Oklahoma City VA Loan- Buyer Benefits.
Okay. So the first thing is, what is a VA loan? Right? So a VA loan is just another type of mortgage loan that is backed by the government to help you buy a home. Okay? So, but this particular one is only for military veterans that have retired or are currently active. So if you’ve never served and or your spouse has never served, you probably will not qualify for this, so just stick around for a different type of loan video, okay?
So, with the VA loan, so it’s only for vets or active members right now, military members, but there’s a lot of really great things about it. For example, it accepts a little bit lower credit score. For a VA loan you can qualify with about a 625 which is considered fair, it’s not considered an outrageously great credit score, so that’s excellent.
It has a lower debt, higher actually debt to income ratio. So you’re able to qualify for a bigger home on the same debt to income that FHA loan would cost you to qualify for less of a home. Right, so it does not have a mortgage interest, it does not have a down payment, and usually the VA allows people, lenders to give you a lower interest rate, which is wonderful because we all know that interest rates will add up at the end of the loan and then you’ll end up paying more.
So let me tell you how just by using your VA loan, you will save thousands of dollars. So let’s start with the down payment. There’s no down payment at all. If you were buying a $200,000 home and utilizing an FHA loan, you would have to put down about $7,000 which we all know will take a little while to save, right?
Now if you were going conventional, you would have to put down at least 5% which would be about $10,000. So immediately, if you qualify for a VA loan, you’re able to buy a house a lot quicker because you don’t have to sit around and save for a few months in order to start the process. Now, if you are using your VA loan, again, there’s no mortgage insurance, which is huge. Not to be confused with your home insurance or anything like that, this is a mortgage insurance that is mandatory for FHA and for conventional.
It works a little bit different than both of those, but let’s start with the VA. So the VA doesn’t have it at all. While on that same $200,000 house, you would pay on an FHA loan and a 30 year FHA loan and a $200,000 house, you would pay $33,000 okay, and that is on top of the loan. Now with your conventional, you would pay up to 20% of the loan, which could be up to $40,000. So just see you are saving not just a little bit upfront, but you’re saving tons of money.
Now it’s very important that whenever you’re qualifying and in the process of buying a home with a VA loan, that everything is done properly because the VA is extremely picky about how they handle their transactions, which of course it’s wonderful because that is why they’re able to give you so much money and so many benefits. So one of the best things to do is to make sure that you’re utilizing a lender that is an expert and a lender that is experienced in VA loans, someone that does it all the time and that is in the state of the home that you’re buying.
It’s very easy to go with outside lenders, with out-of-state lenders whenever you’re moving or relocating, but it’s so important that you know that different states have different qualifications and different rules of how things work. So you always want to utilize a lender there, because they’re experts in what happens in their state.
You also want to use a realtor that’s experienced working with military clients and with VA loans such as myself, I’m actually a military relocation specialist, and that usually just means that I’ve gone to school a little bit longer just to make sure that I’m an expert and I can serve my VA clients properly. So if you want to know if you qualify for a VA loan, it’s super simple, just click below and you’ll be able to find out. Have a great day.
Watch the Rest of the Oklahoma VA Loan Series ⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️
- 🏡Oklahoma City VA Loan- Are Closing Costs Included?📲
- 🏡Oklahoma City VA Loan- Buyer Benefits📲
- 🏡Oklahoma City VA Loan- Buying a New Built📲
- 🏡Oklahoma City VA Loan- Building a House📲