In January of 2018, some relief came their way. The U.S. Department of Veterans Affairs increased home loan limits to $726,524 for eligible veterans, active military members and their families. This is an increase of $5,475 over the previous year and takes into account a 100 percent financing option with no PMI (private mortgage insurance).
The Basics of the VA Entitlement
The VA offers an entitlement amount of up to $36,000 for qualifying veterans, and banks will usually loan up to four times that amount without needing any form of the down payment from the borrower. Similar to other types of mortgages, the borrower must still qualify on a credit basis and show proof of income.
Benefits of Getting a VA Loan with an Oahu Realtor
One of the greatest benefits offered by the government to active service members and veterans is the opportunity to obtain a VA home loan.
Some benefits to doing so include:
- Zero down payment – Eligible borrowers are not required to have a down payment. They must show creditworthiness and prove their income.
- No PMI to pay – Unlike other low down payment home loan programs, VA loans do not require borrowers to obtain private mortgage insurance. This benefit can save borrowers thousands of dollars per year.
- Lower interest rates – While FHA loans come with higher interest rates than standard mortgage programs, VA loans offer lower interest rate programs.
Knowing if you Qualify
There are a variety of mortgage lending companies that offer programs for veterans with varied credit backgrounds. The only way to know if you qualify is to ask a local Oahu realtor for assistance with finding a matching lender. A realtor is a great source for mortgage assistance because they’ll have connections with banks that offer VA loan programs, and can help you negotiate the difficult but rewarding path of getting approved for the home of your dreams.
Hawaii real estate is always a competitive market. The right Oahu realtor will cater to your needs as a veteran and help you every step of the way.