A nationwide panel of professional forecasters recently predicted that home prices would rise in 2013, after being up 4.6 percent at the end of 2012. The Zillow Home Price Expectations Survey reflected renewed optimism in the housing market.
Zillow’s chief economist said the housing market began recovering in the later part of 2012 because of affordable houses and improvements in all aspects of the economy. He predicted the market will continue to grow, though it may be at a slower rate. With this knowledge, veterans who are considering buying a house in the new year should learn about VA home loans to get themselves the best deal on a home.
VA Loan Good Option for Military Borrowers
Financing a home purchase with a VA home loan offers buyers many cost-saving benefits. Qualified buyers can purchase homes without making a down payment. They also won’t have to pay private mortgage insurance, which is required for most borrowers who can’t put down at least 20 percent, and their closing costs will be limited. VA home loans also save veterans from having to pay a prepayment penalty.
Other VA home loan benefits include a higher allowable debt-to-income ratio. Usually, the VA wants to see a DTI that is 41 percent or less, but people may secure a loan even if they have a higher DTI ratio. Some veterans are also able to secure loans two years after a bankruptcy or foreclosure. The wait varies depending on the type of loan and lender guidelines.
VA Home Loan Benefits Provide Support in Hard Times
The VA offers homeowners benefits even past the purchasing process. If you have difficulty making mortgage payments, the VA may mitigate the situation by offering you more options than just paying the delinquency. One option may be to repay the delinquency in part or in installments. The VA also offers veterans the choice of a private sale of the property or signing a deed to make the VA the owner of the property in lieu of foreclosure. The administration could also provide homeowners with information on payment assistance programs.
For more information on using a VA home loan to purchase a property in 2013, contact your Regional Loan Office or a VA-approved lender.