VA Loans For Veterans

You made the honorable decision to serve your country. Your dedication to your country is something to be proud of, and it doesn’t go unnoticed.

If you are considering buying a home, there are benefits and rewards you could reap because of your experience and service to your country. VA home loans are available to veterans and active duty members.

Twin City Lending is Minnesota’s premier mortgage company. We partner with the local VA to ensure that our veterans take full advantage of the excellent loan opportunities available to them. Contact us to obtain more information about our VA loan program.

What are VA Loans?

VA loans are mortgage loans that lenders issue to veterans and active duty service members. The U.S. Department of Veterans Affairs (VA) guarantees them. The U.S. government created the program in 1944 to assist veterans returning home from active duty obtain home loans without a down payment or high credit score. This historic program has provided over 22 million VA loans to help veterans, active duty members, and their families purchase or refinance homes.

The VA Loan program is more important than ever due to stricter lending requirements enforced by lenders nationwide after the collapse of the housing market. It’s a constructive solution to the problems veterans face regarding strict credit and down payment standards.

Difference In VA Home Loans & Regular Home Loans

Qualified military homebuyers have one of the most exclusive, robust loan opportunities at their fingertips. VA Loans, for Veterans and active duty, have excellent loan terms compared to the alternative conventional loan. Some of the benefits active and retired military personnel can receive include:

  • 0% Down Payment
  • No Private Mortgage Insurance (PMI)
  • Easier to Qualify
  • Competitive Interest Rates

Who is Eligible for VA Loans

There are a variety of eligibility requirements that veterans, active duty military members, national guard members, and reservists must meet before being approved for a VA home loan. Spouses of military members who passed away in battle or due to a service-related disability may also qualify. Ultimately the VA determines who is eligible for the home loan program. However, you may have a good chance if you meet at least one of the following requirements:

  • You served 90 consecutive days during a time of active war.
  • You served 181 days of active service during peacetime.
  • You served more than six years in the Reserves or National Guard.
  • You are the spouse of a service member who died in the line of duty or as a service-related disability.

VA Loan Rates

VA home loans usually have much lower rates compared to those of a conventional mortgage. Due to the U.S. government backing them, lenders charge competitive low-interest rates. The VA has nothing to do with setting interest rates. Instead, the lender determines them based on your specific financial situation. The following factors may influence interest rates:

  • Debt-To-Income Ratio
  • Credit Score 
  • Current Market Conditions
  • Loan Duration

Interest rates and annual percentage rates(APR) for your VA loan are not the same. Your interest rate is what you pay each year to borrow the money. Your APR is a broader reflection of your cost to borrow. Your APR will most likely be higher than your interest rate, and lenders will calculate it differently. Some things that have the power to affect your APR include:

  • Discount Points
  • Interest Rate
  • Origination Costs and Fees
  • Closing Agent Fees
  • Other fees depending on the specific type of transaction.

Why Twin City Lending

Twin City Lending is Minnesota’s premier mortgage company. We offer VA home loans to qualified applicants. We want our military members and veterans to take full advantage of the programs they earn and deserve. Our staff at Twin City Lending takes the time to get to know you and what you want and need to match you with the best lending services. Contact us to find out more information about our VA loan.

VA home loans have been around for 74 years and have helped millions of veterans and active duty service members obtain home loans and bypass strict down payment and credit score hassles. Your sacrifices for your country are undeniable, and your dedication is remarkable. Being a member of the U.S. military is something to be proud of, and all of us here at Twin City Lending are honored to serve you in your journey to home ownership.

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