Are you interested in learning more about getting a VA Loan in Nashville? If so, this blog is for you. My business partner and I recently attended a whole course dedicated to VA Loans and wanted to share the information with our clients (past and future). So this blog is going to go over what a VA Loan is, the benefits of a VA Loan, who is eligible, how to obtain the loans, and some more specifics about a VA Loan in Nashville.
What is a VA Loan? A VA loan is a mortgage loan guaranteed by the US Department of Veterans Affairs. It was designed as an amazing financing option for eligible veterans or their surviving spouses.
What are the main benefits of a VA Loan?
- 100% loan to value ratio.. AKA no downpayment required.
- Increase buying power – up to a 55% debt to income ratio.. this is a lot higher than many other loan options so you are able to be approved for more house.
- No mortgage insurance – this is a big one because most low downpayment options require costly mortgage insurance
Who is eligible for Nashville VA Loans? Must be one of the following:
- You are active duty either during wartime (at least 90 consecutive days) or during peacetime (at least 181 days)
- You have more than 6 years of service in the National Guard or Reserves
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.
If you meet one of those four.. . there are four additional things that are required for a VA loan 1. Must have Certificate of Eligibility from the Department of Veterans Affairs 2. Must have suitable credit 3. Must have adequate income 4. The home you purchase must appraise.
How to obtain a VA Loan in Nashville? First – reach out to your local real estate agent (aka Nashville on the Market Real Estate) about a local lender who SPECIALIZES in VA Loans… you do not want just any lender.. you want a lender who KNOWS their VA Loans. They will be able to walk you through every step of the way.
Specifics for VA Loans in Nashville: the 2019 max loan amount for VA Loans is $534,750. Now that does not mean you cannot get a VA loan for higher it would just require more of a downpayment which you can discuss with your real estate professional or your lender.
What are property requirements? The property must be one of the following: single family home (mobile homes on foundations are considered), condos in approved buildings (ask your agent or lender about this list), OR a multi family up to 4 units (must live in one of the units). Home that are not included: businesses, vacation homes or commercial farms. All homes must meet the Minimum Property Requirements (see below).
Minimum Property requirements on a VA Loan in Nashville – there is a misconception that VA loans are strict on property requirements but if you look below… they really are not…
- Safe, structurally sound, & sanitary
- Meet local standards
- Functional/usable mechanical systems
- Reasonable future utility, durability, and economic life.
- Property must have adequate living space, access, problem free crawl spaces and/or basements
- Water availability
- Adequate roofing, heating (no temporary units)
- No termite issues
- No chipping paint/lead paint based issues
Now if you are considering this and want more info or think this may be a good idea for you – reach out to us! We love helping veterans and our service members buy a home! Contact us at lisa@nashvilleonthemarket.com or 615-972-6220 and we will be happy to help you make the best financial decision for you and your family!
xoxo,
Lisa Stigliano
Realtor and Co-Owner
Nashville on the Market Real Estate
Local Nashville Real Estate Professional
