VA loans in Sussex and Rehoboth Beach, Delaware
Tucked away in the Northeast, Delaware is fine place to settle down even for military homebuyers. Better yet, there is a home loan program designed expressly for service members and veterans looking for a Delaware home. VA loans in Delaware bundle several financial benefits into one borrower-friendly home financing package.
Atop the list of financial benefits that come with Delaware VA loans is the minimal down payment. Most VA loan borrowers pay zero down and finance 100 percent of their home. Sussex County, including Rehoboth Beach, has a VA loan limit of $417,000. However, the median price of a home in Sussex County is about $300,000, which allows service members the ability to find a great home within the confines of the loan limit.
Monthly payments with a VA loan tend to be lower than monthly costs of a conventional loan for two major reasons. One reason being the absence of private mortgage insurance (PMI), and the other is the negotiable interest rates. Since the VA insures as much as 25 percent of each loan, VA-certified lenders take on less risk and are willing to lower interest rates. In addition, active-duty personnel, like the 1,700 men and women stationed at Dover Air Force Base, receive caps on their interest rates.
VA loans are also packed with other services and benefits to help borrowers save money while financing their home, such as:
-No prepayment penalty.
-Refinancing options that allow homeowners to lower their interest rate.
-Services to avoid default and foreclosure.
Much to the surprise of military members, qualifying for a VA loan is easier than qualifying for a conventional loan. VA-certified lenders favor scores of at least 620, but all applicants are encouraged to apply, since it is possible to have a foreclosure or bankruptcy in your past and still qualify.
Those who may be eligible for a Delaware VA loan received a discharge that was not dishonorable and fall under one of the following categories:
-Served for 90 days during wartime and 181 days during peacetime.
-Served in the Reserves or National Guard for at least six years.
-Spouse of a service member who died in the line of duty or because of a service-connected injury.
A Certificate of Eligibility (COE) marks the first step on the path to home ownership via a VA loan in Delaware. The VA and VA-certified lenders have COE forms available. COEs are plain forms that just make sure you meet the initial eligibility requirements.
More information on Delaware VA loans, contact a VA specialist today!