New VA Loan Benefits For 2021
With all the curveballs 2020 has thrown this year, we are excited to see there is some good news ahead for National Guard Members. Beginning in 2021, National Guard Members and Reserve troop members without active-duty service will be eligible to receive a VA home loan.
At present, National Guard and Reserve troops are only eligible for VA home loans if they have 90 consecutive days of active service or if they have been a member for at least six years. With the new law, Guard and Reserve members who have at least 90 days of service are eligible for the home loan program as long as 30 days have been consecutive.
Since July of this year, more than 37,100 National Guard troops have been deployed in response to the pandemic, civil unrest, and weather-related emergencies across the country. As experienced VA home lenders, our team at 1st United Mortgage is excited to work see more people can now access the unique benefits of the VA home loan program.
Overview of the VA Home Loan
Thanks to competitive interest rates and the ability to purchase a home with no down payment, VA home loans make it possible for many veteran and active-duty members to fulfill the American dream of homeownership. Though these loans are backed by the VA, they aren’t government loans. In other words, they are still offered through private lenders. Click here for even more details about this program, including eligibility and fees.
One very important benefit of the VA home loan is that you don’t need perfect credit and can even secure a VA home loan with a score under 660. Don’t have enough credit? That’s ok too. The VA established broad requirements that do not include credit score or income thresholds for borrowers. Keep in mind that you will still need to meet the individual lender requirements, but other factors such as payment history, debt-to-income ratio and a stable income can be considered.