VA Loans For Reno NV First Time Home Buyers

First Time Home Buyers in Reno, NV are using their Veterans Administration Loan (VA Loan) to purchase a home.

The current low home prices and record low interest rates have many people excited about purchasing a home again. But if you are a first time home buyer you may be overwhelmed by all of the information that is out there concerning buying a home and what type of loan you are going to use. There are many loan options available but my focus here will be the VA Loan!

Buying your first home can be a very rewarding experience and a VA (Veterans Administration) Loan might be a great option for you. So how do you qualify for a VA Loan? If you served anytime in any of the U.S. armed forces and were honorably discharged then you are eligible to use your benefit to buy a home. The VA Loan is one the best ways for first time home buyers to purchase a home because of its 100% financing!

What are the benefits to using your a VA Loan if you are buying a home for the first time in Northern Nevada?

As mentioned earlier, the VA Loan is great for first time home buyers, and for young families, to purchase a home because there is no down payment required. It is 100% financed at time of origination (as long as long as the loan amount does not exceed appraised value). Banks have become so strict they oftentimes require borrowers to put 10-20% of the loan amount down thus making homeownership out of reach for many home buyers who are unable to save that much money. The VA Loan is one of the few programs that does not require a down payment.

Qualifying for VA Loan is easier than other available loan programs ~ Because many first time home buyers & young families don’t have strong credit histories or no credit established, getting qualified is easier than qualifying for FHA Loan or Conventional Loan programs. This does not mean you don’t have to qualify, because you do. You must still qualify to borrow money from the bank as you would any other loan program.  You still need to be in good financial standings and current on all of your bills and have a good credit history. Qualifying for a VA Loan is easier because they are less strict but the mortgage company you choose will still want to see some type of financial history from you.

Lower Monthly Payments ~ The VA Loan does not have or require you to obtain mortgage insurance. With no PMI (Private Monthly Mortgage Insurance) your monthly mortgage payment will be lower. This benefit will save you hundreds of dollars each year. Because this type of loan is backed by the government, many banks feel secure enough not to require you to purchase PMI. You will need to shop around different companies because there are some banks that still do require a PMI, albeit it is often lower than on other types of loan programs.

The VA Loan is 100% financed! But there are other fees charged to you the home buyer!

VA Loan Fees ~ There is a cost of doing business in every field and banks/mortgage companies are not different. But when you use
your VA Benefit to purchase a home, these fees are kept to a minimum! VA rules limit the amount you can be charged for closing costs.

It is important to consult with several lenders to find out what they charge, each company will be different. So find one that will work for you. I have a list of local lenders that I work with and I can provide you names and phone numbers to help you get started (if you need my help).

Typically the fees add up to about 3% of the purchase price and this amount will cover the closing costs. Closing fees charged usually  include a 1% loan origination fee, pre-paids like taxes and insurance, a credit app fee, a flood certification fee, the appraisal fee, etc.

When buying a home in Reno, NV it is very likely that your real estate agent can negotiate the seller to pay some, if not all, of those costs for you. So the amount of money you will need at the time of closing could very well be less than the 3% we talked about earlier. But always plan to pay the fees in the event the seller refuses!

So to recap, if you are a Northern Nevada home buyer with a steady job, you are paying your bills on time, you have served in the armed forces and were honorably discharged, you should be eligible for the VA Loan! Home ownership is just around the corner! Call me today and we can get to work on finding you and your family the home of your dreams located right here in the Reno/Sparks Nevada area!

First Time Home Buyers in Reno, NV are using their Veterans Administration Loan (VA Loan) to purchase a home.

VA Loans For Reno NV First Time Home Buyers 

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