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  • VA Loans-Tucson, AZ

    Owning a home is part of the American dream. The Southwest is a unique region of the country with beautiful cities like Tucson, AZ where you can move into your dream home a short drive southeast of Phoenix. If you can bear the intense summer heat for three months, then you will love the rest of the year which is normally sunny and warm.

    Housing can feel unaffordable for many, however, so you need the right tools to cover the costs of a new home for your family. For qualified veterans, active-duty service members, and surviving spouses, VA loans from District Lending can give you the purchasing power needed for a home in Tucson, AZ.

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  • What Makes Arizona VA Loans Different?

    There are many types of loans out there for prospective buyers, including conventional, jumbo, FHA, and USDA mortgages. What you qualify for depends on life circumstances and personal finances. A Veterans Affairs loan is only available to eligible veterans, active-duty service members, and surviving spouses. Let's talk through what makes these VA home loans in Tucson, AZ unique.

    Guaranteed by a Government Agency

    Lenders want to avoid as much risk as possible when giving out funds to homebuyers. The Department of Veterans Affairs insures VA home loans so that a lender can lower the standards for approving a VA loan application without incurring the extra risk that may come with it.

    Since VA loans are guaranteed by the Department of VA, it is easier for qualified borrowers to afford a home in Tucson, AZ.

    No Down Payment or Mortgage Insurance

    There are several benefits to pursuing VA home loan financing. First, you won’t have to pay anything upfront outside of closing costs when you purchase a home. Even for FHA loans, the minimum upfront investment is 3.5%, so this feature makes a big difference in affordability.

    Additionally, you will not pay any private mortgage insurance on the loan since it is insured by the Department of Veterans Affairs.

    Lower Interest Rates

    The interest rate on a VA loan determines how much money is paid to the lender in addition to the loan amount. The lower the interest rate, the lower the cost of the mortgage. VA loans come with lower interest rates to make homes more affordable for veterans, active-duty service members, and spouses in Tucson, AZ. Without a VA loan, the average rates in this market are 7.16% for a 30-year fixed and 6.19 for a 15-year fixed.

    The best rates come with the best deal.

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    What Affects Your VA Loan?

    Several requirements must be met for you to qualify for a VA loan. Additionally, some of these elements will impact the level of your monthly payments or the total loan amount.
    • Military Status

      Only veterans, active service members, and surviving spouses are eligible to receive VA home loans to help them purchase residential properties. Your military service plays the most important role in qualification, and one of the following statements must be true to receive a VA loan.

      • You have done 181 days of active service during peacetime

      • You have done 90 consecutive days of active service during the war

      • You have served more than six years as a National Guard or Reserves

      • You are an active spouse of a service member who died in the line of duty or due to a disability connected to the service.

      If the above statements are not true, but you were discharged, then your eligibility depends on your discharge status.

      • Your discharging was due to hardship, convenience for the government, or reduction in force

      • The discharging was due to a medical condition or service-related disability

      • You were discharged for early out and served a minimum of 21 months of a two-year enlistment

    • Entitlement

      How much you can borrow for a VA loan is dependent on your VA entitlement. A full entitlement means that there is no maximum amount that you can borrow that will require an upfront investment, while a partial entitlement comes with VA loan limits that reduce your borrowing capacity in Tucson, AZ, before having to invest something upfront for the VA loan. The current VA loan limit in all AZ counties is $726,200.

      You can receive a full entitlement on VA loans if one of these statements is true.

      • You are a new VA loan applicant

      • You have paid previous VA loans and sold the property

      • You faced foreclosure but cleared the loan

    • Employment/Income

      For a lender to grant a VA home loan to borrowers in Tucson, AZ, they must prove that they have the income and employment history needed to cover payments. One of the measuring sticks that lenders will use is your debt-to-income ratio. DTI is a comparison of your monthly debt to your monthly income. Most firms that give out VA loans want to see a maximum DTI of 41%. Any higher and you may be considered too risky to receive a VA mortgage.

      Additionally, proof of two years of employment can also affect whether or not you receive a VA mortgage.

    • Property Status

      The VA will confirm if the property you are financing is a reasonable value compared to the price of the Arizona VA home loan. That means an appraisal will be required, and that could affect the amount of the loan. In Tucson, the median sale price of homes is $333,000.

      Additionally, there are a few requirements for this property to be eligible for using VA loans to buy. It must be a primary residence that the buyer moves into within 60 days of loan approval. The home cannot be a vacation, seasonal, or rental property. The location of the home in Tucson, AZ, will also impact the approval process.

    • Credit Score

      Your credit history does double duty when applying for VA loans. First, a lender may look at your credit score to analyze if you have a good history of paying back debt. Though there is no minimum credit score requirement from the VA, you could be contending with a lender in Tucson, AZ, that recommends a score of at least 580.

      That number will also impact the interest rates that you can receive with VA mortgages, which are still lower than the average rates most Tucson buyers can obtain.

    Tools From District Lending

    No Credit Check Quote
    Veterans, active service members, and surviving spouses that want to secure VA home loans will go through a complex process to buy their homes. This process can become a little simpler by requesting a free quote from District Lending. It will paint a clearer picture of how these VA loans work in Tucson, AZ.
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    Mortgage Calculator
    Want to see the numbers yourself as you search for a dream home? Our mortgage calculator will let you fiddle with the variables and see how the benefits of VA loans play out in monthly payments. While the final numbers are not guaranteed to match perfectly, they'll help you see what you can afford in Tucson. Tor reference, the average monthly mortgage payment in AZ is $1,116.
    Calculate Your Payments
    Contact District Lending
    Maybe you have questions about eligible borrowers, how to refinance a previous VA loan, or how VA loans in Tucson, AZ, and Pima County can help you afford a new home. Whatever answers you need, you have come to the right lender. Contact us today and we will discuss the options for your family to finance new housing.
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