When you take a good look at VA loans Arizona, you’ll be pleasantly surprised to find some of the myths surrounding these home loans are just that. Specifically, it’s good to know that all types of VA loans that are backed by the U.S. Department of Veterans Affairs (VA) have no upper limit on the loan itself or the price of the house it is attached to. This is contrary to the popular belief that such an upper cap exists and many veterans have been steered towards jumble loans or other types when VA loans are the better deal.
So the good news should make more veterans interested in VA loan requirements since the loan rates for this type are the lowest on the market today. Real estate experts are all saying this type of loan has great potential. It’s worth your time as a veteran to revisit some of the requirements so you can take advantage of this good deal.
VA loan requirements and limits
It’s also important to understand how the system works. The term loan limit is about the amount that a veteran can borrow without making a down payment. It’s not about having an upper limit on the amount they can borrow on a mortgage. The basic entitlement amount the Veterans Administration (VA) will guarantee for the different types of VA loans is $36,000 dollars. In this way the VA is like mortgage insurance for veterans. While lenders can approve a price up to four times this basic entitlement amount at $144,000, the VA will also guarantee up to one-quarter of the purchase price based on loan limits that match up with those established by Fannie Mae and Freddie Mac in the $417,000 to $625,500 price range.
Have more expensive tastes? It’s not a problem to get one of the VA personal loans in Arizona that are available, but you need to come up with a 25% down payment on the amount above the set limits. So , if you buy a place that is priced $100,000 over the existing limit, you need to make a down payment of $25,000—or 25% of the amount above the limit.
Qualifying for Arizona VA Loans
If you are interested in getting one of these loans, you will need to get a Certificate of Eligibility (COE) to establish the fact that you qualify for VA loans Arizona. This type of certificate is available to people who have served in the United States Armed Forces and met several criteria including active wartime duty service of 90 days, six years as a member of the National Guard or reserve or peacetime active-duty service that totals 181 days.
Although this particular type of loan is geared towards the people who qualify under the COE, there are some other more traditional requirements they will need to meet for a mortgage. For example, the veteran will need to have a sufficient credit history to satisfy lenders. It’s possible to get a record of your credit report from any one of the three companies that look after the data. A credit history that is dented or bruised can be repaired by making payments on time or using several other techniques.
These VA loan requirements make for better terms for veterans than jumbo loans where the rates are higher. There’s no penalty to prepay these mortgages and VA personal loans are assumable which means the buyer can take over the seller’s payments.