Home Loans for Veterans – Take Advantage of Your Benefits

Home Loans for Veterans - Take Advantage of Your BenefitsMilitary families often face challenges when it comes to the home buying process, such as struggling with poor credit or trying to come up with a down payment.

Fortunately, home loans for veterans help to alleviate this burden by providing financial accommodations that pave the way to buying a new house.

While you may be modest about your veteran status, being willing to accept recognition for your sacrifices allows you to take advantage of these benefits as you search for the perfect new home.

Stop Worrying About a Perfect Credit Score

The Department of Veterans Affairs only backs the loans instead of issuing them, which means that they are not concerned about checking credit scores.

For this reason, VA loan lenders tend to be more relaxed about the credit scores that they require from people using this benefit.

You will also find that they are more forgiving of blemishes on your credit report from the past, such as foreclosures, provided that you can explain how you have improved your financial responsibility.

Home Loans for Veterans: Get Into a Home Faster With No Down Payment

The rising costs of houses today has made it extremely difficult for many military families to come up with tens of thousands of dollars for a down payment. Home loans for veterans are available with zero down payments required for qualified buyers.

While you can still put down payment if you’d like, being able to skip saving up money for years allows you to ditch the rent cycle and get into a new home right now.

Enjoy Cost Savings That Help You Afford a Better House

A huge part of your home buying budget involves planning to pay for the interest on your mortgage, closing costs for your new home and the monthly mortgage insurance.

Home loans for veterans help you get lower interest rates than you would get with a conventional loan, and you will have the opportunity to negotiate your closing costs.

In many cases, you will not have to pay the closing costs and the associated fees at all.

When you take these savings into account, along with the ability to opt out of mortgage insurance, you can have a considerably larger amount of money to put toward paying the mortgage on a better house.

Pay Off Your House Early with No Penalties

For non-military families, paying off a home loan early can still be costly, since prepayment penalties are often in place to protect lenders from losing years of interest at once. If you plan to pay off your house early, having a VA loan protects you from prepayment penalties, so that your dedication to paying down your debt is worth it.

Take Advantage of This Benefit for a Lifetime

Many people think that this is just a onetime benefit. However, you can continue to reapply for this type of loan as needed for the rest of your life.

Whether you are ready to upgrade to a larger home for your growing family or need to downsize, you can take advantage of a VA home loan at any time.

As a veteran or active member of the military, you have worked hard to serve our country and protect the freedom of every U.S. citizen. Now, you have the opportunity to take advantage of benefits that you have earned through your time in service.

Other than proving your eligibility, the application process for a VA loan is much like the other types of loans, so go ahead and get started planning to save money on your new home today.


Can I Get a VA Loan If I’m Self Employed?

Do you own a business and want to buy your own house? Wondering if you can get a VA loan if you’re self-employed?

Self-employment can pose unique challenges when purchasing a house. The income of self-employed individuals can be less consistent compared to those receiving fixed monthly salaries.

Because of the inconsistency, lenders often scrutinize the application of self-employed home buyers. Applicants are required to submit a least 2 years of income tax returns and business documents to get a VA loan.

You are considered a self-employed when you meet any of the following criteria:

  • You are the sole owner of the business
  • You own at least 25% of the business
  • You are working freelance
  • You are a contract worker

Lending policies and guidelines of VA loans for self-employed veterans are different for each lender.

Can I Get a VA Loan if I’m Self Employed?
Self Employed in the Family Business

If you are working for a family-owned business, you will not be considered as self-employed unless you own 25% of the company. This ownership should be confirmed by a third-party figure. In addition, you are required to submit tax returns for 2 years and the business should have been active for at least a year.

Self-employed individuals should also understand that lenders only consider the income which you pay in tax. Any amounts that are not documented are not counted.

Freelance Workers and VA Loans

It is possible for freelance workers to get a VA loan. With modified paperwork requirements, lenders can give you a positive feedback. Individual tax returns and all applicable income documents for 2 years should be submitted.

In self-employment, stability is only considered if the business has been operating for at least 2 years. In addition, a profit and loss statement for the current year is required if the taxes have not been filed.

Documents Required for Self-Employed Individuals

The challenge is being able to show the lender that your business is on a solid financial ground. For self-employed qualified military borrowers, heavy paperwork is required to process your VA loan.

To gauge your income trajectory, lenders will look to at the two-year income documents. This will determine if you have the ability to repay the loan. A major red flag in your application is when your income decreases each year. In most cases, the lender will require you a written explanation of the drop. If the descent is huge, your application will be declined.

Lenders need a healthy amount of information to decide to give you the loan in addition to the usual requirements listed on the VA loan application. To apply as a self-employed veteran, you need to dig up these required documents:

  • Current financial statement – this should include a year-to-date profit and loss profit
  • Two consecutive years of individual income tax returns
  • Two consecutive years of business tax returns – this is required for corporation or partnership
  • List of your partners or stockholders

Conclusion

Yes, you can get a VA loan if you’re self employed. Collecting the required documents may sound exhausting, but it is reasonable for lenders to get as much information as possible to show that your business is reliable and sustainable.

Jimmy Vercellino and his team can help you get the paperwork needed to get your loan approved, guiding you through the process. Call today and let’s get started!