When you’re shopping for home loans in McKinney, Texas, ask our mortgage company if you qualify for a VA Loan. Veterans Administration Loans are advantageous because they offer homebuyers 0 down and other benefits.
You may be aware that for conventional mortgages, if homebuyers do not put down at least 20% on their home, they must pay private mortgage insurance monthly until the reach 20% equity in order to protect the mortgage lender against default. With VA Loans, this is not necessary. If you opt for 0 down, you pay a funding fee, but it is a one-time fee and is almost always less than PMI. Additionally, you can finance this fee and pay it over time, rather that in a lump sum at the time of purchase.
The purpose of a VA Loan is to make it easier for veterans and their surviving spouses to purchase a home, as a way to thank them for their service. VA Loans are not government loans, but they are partly backed by the Department of Veterans Affairs, and that’s how mortgage lenders are able to offer such advantageous terms on these home loans.
For this reason, it can be easier to qualify for a VA Loan than for a conventional mortgage. Generally, you would need a credit score at least in the 600s, although this is not a hard-and-fast rule and other factors can come into play, such as which McKinney mortgage loan lender you choose.
Contact PRMI McKinney today to find out if you qualify for a VA Loan. Our mortgage company is here to help you.