Obtaining a VA Loan in Arizona

Veterans and active-duty military personnel have made incredible sacrifices for their country. In return, the U.S. Department of Veterans Affairs (VA) offers numerous benefits, one of which is the VA home loan. This benefit has enabled countless veterans to achieve homeownership. If you’re considering buying a home in Arizona, this guide will walk you through the VA loan process, its benefits, and the factors affecting its interest rates.

What is a VA Home Loan?

A VA home loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs. Unlike traditional loans, the VA loan does not require a down payment, and it typically offers more favorable terms.

Eligibility for VA Loans

To apply for a VA loan in Arizona or elsewhere, you must first meet the eligibility requirements:

Service Requirements: You must have served:

• 90 consecutive days of active service during wartime, OR
• 181 days of active service during peacetime, OR
• 6 years of service in the Reserves or National Guard.

Character of Service: Must have an honorable discharge or other qualifying conditions.

Certificate of Eligibility (COE): Before applying for the VA loan, you need to obtain your COE, which proves to lenders that you’re eligible. You can apply for this online, through your lender, or by mail.

Steps to Obtain a VA Loan in Arizona

• Choose a VA-Approved Lender: Not all lenders can issue VA loans, and not all lenders that offer VA loans are experienced. Six Pillar Lending is Veteran-owned, so we’ve been on both sides of the VA loan process.
• Pre-qualification: The lender will review your financial information to give you an estimate of the loan amount you might qualify for.
• Home Search: With your pre-qualification letter, search for your desired home in Arizona. Consider hiring a real estate agent familiar with the VA process.
• Offer & Contract: Once you find a home, make an offer. If accepted, a purchase agreement is drafted.
• VA Appraisal: Before your loan is approved, the VA requires an appraisal to determine the property’s value and ensure it meets safety standards.
• Loan Underwriting: The lender will review all your documentation to make a final decision on the loan.
• Closing: After approval, you’ll close the deal. Here, you’ll sign all the necessary paperwork and become the homeowner!

Determining VA Loan Interest Rates

Interest rates for VA loans are influenced by:

• Credit Score: Lenders use this to gauge the risk. Higher scores often lead to better rates.
• Loan Duration: Typically, 15-year loans have lower interest rates than 30-year loans.
• Economic Factors: Economic conditions, Federal Reserve policies, and inflation can all influence interest rates.
• Loan Type: Whether it’s a fixed or adjustable rate can affect the interest.
• Lender-Specific Factors: Individual lenders may have unique considerations affecting rates.

Benefits of a VA Home Loan

• No Down Payment: VA loans often require no down payment, making homeownership more accessible.
• No Private Mortgage Insurance (PMI): Unlike conventional loans, VA loans don’t require PMI, resulting in lower monthly payments.
• Competitive Interest Rates: Typically, VA loans have lower rates than traditional mortgages.
• Flexible Qualification Standards: VA loans tend to be more forgiving with credit history and income.
• No Prepayment Penalties: You won’t be penalized for paying off your VA loan early.
• Assistance for Struggling Borrowers: The VA offers assistance to borrowers facing financial difficulties.

Ready to put your hard-earned VA home loan benefits to use?

By understanding the VA loan process in Arizona, eligible veterans and active-duty personnel can leverage this incredible benefit to achieve homeownership. Being Veterans as well as mortgage brokers, we have experienced a lot of different scenarios and circumstances regarding VA home loans.

We deeply care about our fellow Veterans and their families. With Six Pillar Lending it’s not marketing, it’s what we do. Contact us today to ask any questions you may have or, if you’re ready to go, submit your information for a quote.