VA Loans-Chandler, AZ

The VA sets rules for the types of properties that borrowers can purchase with VA mortgages. For example, the home in question must become your primary residence and be occupied within 60 days of signing the mortgage loan agreement. The hottest homes in Chandler can sell within 16 days, so the short timeframe works well for moving in within 60 days.

Another requirement is that the home is not a vacation or seasonal property. It also cannot be an investment property. A VA appraisal will be conducted to determine the fair market value of the home and ensure that the loan amount is correct. Currently, the median sale price in Chandler is $521,000.

Do you have a strong history of paying back your debts? A good credit score could play a role in whether or not you are eligible for a VA loan from a particular lender. Some lenders might require a score of at least 580 to approve your loan, though there is no requirement from the VA.

Strong credit can also positively impact your mortgage conditions, resulting in a lower interest rate that reduces your payments on a VA home loan.

The VA entitlement determines how much money you can borrow for a property purchase before a down payment will be required. A full entitlement removes this limit, though District Lending offers maximum VA loans of $2,000,000.

Partial entitlement can come into play if you already own a home and want to purchase a new one. If you did not use your full entitlement initially, the remaining entitlement can be used for the next home if certain conditions are met.

Even though the standards set by the government are low for VA loans, each lender is still going to analyze your financials to ensure that you can pay back the VA loan. To determine this, they will look at bank statements, pay stubs, tax returns, current employment, monthly income, monthly debt, and more to see what you can afford.

Even with all the benefits, VA home loans involve large amounts of money, and defaulting will hurt the lender. For this reason, they will vet borrowers very efficiently to confirm the finances are sound.

When it is time to sign the contract on your new home, several fees will be due at the outset. These closing costs may include an attorney fee, title search fee, realtor fee, and VA funding fee. Expect these costs to equal 3-6% of the purchase price.

A VA-approved lender will have to verify that you are eligible for a VA loan based on military service with a certificate of eligibility. The recipient must have been a service member for 181 days of peacetime, 90 straight days of wartime, 6 years in the National Guard or Reserves, or be a surviving spouse. If you were discharged, then ask your lender what standards must be met to still qualify for a VA loan.