2019 Idaho Real Estate Blog

VA Loans in Idaho Main Idaho Real Estate Insights

Purchasing a home shouldn't be a scary experience. It should be a pleasant one. With the help of an Idaho VA loan, military home buyers can finance their home with one of the friendliest programs to borrowers.

Layered with benefits, the VA Home Loan program has helped more than 19 million veterans and service members finance their home. Military homebuyers still turn to VA loans to cash in on one of their VA benefits. Conventional loans usually don’t fare well compared to VA loans.
            One of the long-lasting money savers of Idaho VA loans is the negotiable interest rates. With the VA’s guarantee of up to one quarter of each loan, VA-certified lenders are more apt to shave off a few points since they assume less risk. Active-duty homebuyers get the added savings from interest rate caps.
            Although lower interest rates make for lower monthly payments, there is an even more popular perk. The VA loan program is one of the last standing options to feature no-money-down possibilities. Qualified veterans and service members pay no money down to finance 100 percent of their home. In Idaho, the VA loan limit is $417,000 which is more than enough to finance a starter home in Boise. Other major borrower-friendly perks include:
            -No prepayment penalty
            -Cheaper closing costs than most loan options
            -No private mortgage insurance
            -Lumping the VA funding fee into monthly payments
            -Options to refinance and lower interest rates
            Unfortunately, not every service member and veteran are eligible for an Idaho VA loan. The first prerequisite is having received a discharge that was not dishonorable. Service members who were on active duty for 90 days or 181 days during wartime or peacetime, respectively, may be eligible. National Guard members and Reservists might be eligible if they served at least six years. Spouses of veterans who died in the line of duty may also be eligible.
            The Certificate of Eligibility (COE) marks the first step in getting an Idaho VA loan. There’s nothing complicated about the COE. It’s a form that affirms you meet the general eligibility requirements and can be found on the VA website or through VA-certified lenders.
            Qualifying for a VA loan in Idaho is likely easier than qualifying for a conventional option. VA loan lenders look for credit scores of about 620, nothing extraordinary. Debt-to-income ratios can be as high as 41 percent, though it is best to lower this figure as much as possible. The VA reported that about 80 percent of borrowers who qualified for a VA loan did not qualify for a traditional one. VA loans can make it possible for veterans to receive financing for homes they may have not been eligible for with a conventional loan.
            For more information on Idaho VA loans, contact a VA-certified lender.

 
Posted by tlangford at 3/9/2011 2:56:00 PM
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Michelle Penick, Build Idaho Client Real Estate Services

Michelle Penick

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