Did you know that your military service can help you become a college-educated homeowner? It’s true; there are outstanding VA loans available to help you achieve your goals. Keep reading to find out how using VA student loans for college can help you buy a house in Eugene, OR.
VA Student Loans Repayment
There’s no denying that attending college is expensive. Given the costs, there’s a decent chance that you financed part of your college degree with student loans. Fortunately, you can take advantage of VA student loan forgiveness and repayment plans to manage your finances.
As an honorably discharged veteran, it is possible to delay or avoid repaying your federal student loans. Common ways that veterans receive help handling the financial burdens that come with repaying student loans include
- Public Service Loan Forgiveness
- Veteran’s Permanent and Total Disability Discharge
- National Defense Student Loan Discharge
Do you help provide healthcare to your fellow veterans in Lane County? If so, you might qualify for the Education Debt Reduction Program. This first-rate program grants up to $200,000 in federal student loan forgiveness for healthcare professionals.
Along with easing the student loan hit to your wallet, you can use the VA to help buy your ideal home.
VA Home Loan
Perhaps you’ve already heard that VA home loans don’t require a down payment. While this prominent perk is a true money-saver, you’ll also find a VA loan far more accessible to obtain than a conventional home mortgage.
When you apply for a conventional home loan, the lender looks at things like your debt-to-income ratio and your credit history. You won’t need to meet quite as stringent requirements with a VA loan. Lenders offering VA home mortgages use more flexible eligibility criteria to help veterans become homeowners.
For one thing, you won’t need as much money at the start of the loan. VA home loans typically don’t require a down payment, saving you serious upfront money. You’ll also avoid the private mortgage insurance required with a conventional loan when your down payment is under twenty percent.
Lenders who offer VA-backed home loans are also more forgiving when it comes to your debt-to-income ratio. You can expect leniency regarding your VA student loans. Your student loan debt is often cut in half or not counted at all when calculating the debt-to-income ratio for a VA home loan.
Now that we’ve introduced you to the benefits of choosing a VA home loan, it’s time to turn to lenders.
Choose a VA Loan Lender
You won’t have to search hard for a lender for a VA loan. Still, lenders aren’t all the same, and you should do your homework before signing a contract. According to NerdWallet, you won’t choose wrong if your checklist includes things like:
- Talk to multiple lenders so that you can compare the details
- Don’t forget to ask about the cost of the lending fees
- Examine the adjusted and fixed interest rates, including the APR, for the loan
Improve Your Credit Score
Keep in mind that your financial situation is always an important consideration. Even though lenders are more flexible in approving VA loans, they still want to lend to viable borrowers. It’s always wise to take a careful look at your credit score and work at improving it, if necessary, before approaching a lender.
Happily, it’s not impossible to make dramatic improvements in your credit score if you work at it. Make it your mission to pay down credit card balances. Keep track of the due dates for your bills to make sure that you don’t miss any payments.
Another way to upgrade your credit is to reduce your available credit usage. For example, experts recommend using no more than thirty percent of your available credit. Ideally, you should aim to use no more than ten percent of your credit at any particular time.
Would you like more suggestions on upping your credit score so that you can get the best VA home loans? Check out this article from Investopedia for a bundle of sure ways to tidy up a so-so credit score.
Lastly, there’s no reason to let college debt prevent you from buying a house. Yes, you can have student loans and a home in Eugene, OR. By using VA student loans, you’ll be able to purchase a house that fits your budget and lifestyle in Lane County.
The home loan officers at Strategic Mortgage Solutions are experts in matching VA home loans with our eligible clients in the Eugene area. Contact us to find out how a VA mortgage can make your homeownership dreams become a reality.