Buying a home in a hot real estate market like Atlanta can be challenging because of housing prices. Most buyers cannot afford the upfront costs of a property, even if it’s a minimum investment in some of the more affordable areas of the city. As a result, many borrowers must apply for mortgage loans to pay for their homes and repay them over time.
However, conventional financing is not an easy investment to make. Interest rates and significant upfront costs can shut many potential buyers out. If you are a veteran, active-duty service member, or surviving spouse of a military veteran, there is a far more appealing option to pursue homeownership in Atlanta: A VA loan.
VA loan benefits are designed to make property ownership more accessible to veterans, including World War II veterans or the selected reserve, active-duty service members, and surviving spouses. The Department of Veterans Affairs insures loans so participating lenders can offer more favorable terms and qualification standards.
Some key benefits of a VA loan include the low down payment requirement, competitive interest rates, and higher borrowing limits than FHA or USDA loans. This article will cover everything you need to know about the loan program, including which Georgia department to go through, the Georgia Dream program, payment assistance, qualifications for home loans, such as whether it needs to be your primary residence, and more.
Key Financial Benefits of VA Loans in Atlanta
If you have a background in military service, a VA loan makes far more financial sense than other home loan options, such as an FHA mortgage or conventional loans.
The most significant VA home loan benefit is the down payment requirement. Qualified borrowers do not have to pay anything upfront for the cost of the home. This means you can finance the entire purchase price of the house while only paying closing costs.
Saving for a significant down payment often keeps most people from purchasing homes in Atlanta. This can be incredibly challenging for disabled veterans on a fixed income. As an eligible veteran, active service member, or surviving spouse, you can buy a house with a zero-down payment option if you secure a VA loan.
Another benefit is the lack of private mortgage insurance. For most loans, paying nothing upfront for the down payment requires a private mortgage insurance premium. Since the federal government insures a portion of the VA loan, the lender will not charge you this insurance premium.
On average, interest rates for a VA loan are lower than comparable financing products. The interest rate will affect the total loan amount you pay and the amount of your monthly payment. Private lenders can offer better interest rates with the VA loan program, making buying a home in Atlanta more affordable for qualified borrowers.
These benefits can be a game-changer for eligible buyers in an expensive market. Veterans, active-duty personnel, eligible surviving spouses, and those who served long enough in the National Guard can apply for loans to purchase a home.
If you decide to pursue a down payment, you can still apply for third-party assistance, such as the Georgia Dream Program. This program is available for down payment and closing cost assistance through the Georgia Department of Community Affairs.
Georgia Dream Program
The Georgia Dream program is a loan program offering several forms of payment assistance to help individuals achieve home ownership. This program is separate from any loan program through Veteran’s Affairs, but you will still work with a loan officer, and many veterans are eligible for assistance.
The Georgia Dream Standard program isn’t a loan program. Instead, this is a down payment program. The Georgia Dream Standard program for down payment assistance doesn’t require credit approval or documentation from Veterans Affairs for military families. Everyone, including members of the National Guard or other military branches, must meet income requirements.
The Georgia Dream Loan Program is for first-time homebuyers. Qualified applicants must meet income requirements to receive home loans. This loan program offers down payment assistance. The interest rate is determined by the market.
The Georgia Dream Peach Plus Program has more flexible eligibility requirements to help individuals achieve home ownership. The first-time homebuyer requirement is waived for this program. However, buyers must still meet income eligibility requirements, including the price of their new home. The interest rate will vary based on the market. Down payment assistance is available.
Georgia reently announced a new program for veterans called the Georgia Dream Peach Select Veterans Assistance Program. The first time home buyer requirement is waived, but veterans do need to meet eligibility criteria. Any person who is approved for a Georgia Dream VA Loan automatically qualifies. However, no down payment assistance is available.
How VA Loans Simplify the Home Buying Process for Veterans and Active Duty?
Purchasing a house in Georgia can be a complicated process. The VA loan program was created to simplify this process for those who have served our country. Whether you are a veteran, active service member, or surviving spouse, TrueWay Mortgage is a qualified lender that can help you navigate the housing market to purchase a home.
Applying for a VA loan is a simple process with our team. The initial application can be completed entirely online, or service members can contact one of our loan officers over the phone. We will guide you through the application and help you understand VA entitlement, the Certificate of Eligibility requirement, and other qualification standards.
TrueWay Mortgage has developed an extensive network of real estate professionals in Atlanta, Georgia, to facilitate a smoother VA loan acquisition process. By partnering with many agents, firms, and other parties in the area, we can make processing your VA home loan more efficient.
Several documents will be needed to ensure a faster application process. Depending on your situation, you may need a government-issued ID, military service verification, the Certificate of Eligibility, W-2s, bank statements, forms for a service-connected disability, and a divorce decree.
Surviving spouses may need proof of marriage to a deceased veteran. They will also need proof of their spouse’s service to prove they are eligible for a lender. Children or other special cases will also need to prove their connection to the military to qualify for Georgia VA loans.
Our goal is to help you acquire your VA loan as quickly as possible so you can close on an Atlanta house.
Refinancing Opportunities with VA Loans in Atlanta
If you secure a VA loan for your home purchase, you will also have the advantage of refinancing in the future. Many homeowners use a VA refinance to improve their financial situations after owning property for several years. The two primary refinance options are streamline refinancing and cash-out refinancing.
A streamline refinance is often called a VA interest rate reduction refinance loan (IRRRL). The purpose of this solution is to make monthly payments more affordable. Refinancing with an IRRRL is relatively simple, with minimal closing costs. These expenses can typically be rolled into the new loan, so they don’t have to be paid immediately from your bank account.
The new loan will include a lower interest rate, reducing the cost of your mortgage premiums and the total loan amount. This is a great option to use if you have owned your VA-financed home in Atlanta for several years and have a better credit score.
You can also refinance your existing VA loan to take advantage of equity. The longer you own the home under the VA loan program, the more equity you have in the property. You can eventually refinance to take a lump-sum payment of cash based on this equity. A cash-out refinance can be used:
- To pay off the remaining balance on the existing home
- For home improvements
- Catch up on mortgage payments to avoid foreclosure
- Another necessary purchase for your current home
- Pay off debt
Many lenders offer favorable terms for VA loan refinancing. You can either lower the cost of your payments or take out cash to invest in other objectives or pay off debt.
Why Choose TrueWay Mortgage for VA Loans in Atlanta?
Finding the right lending partner is essential when navigating the housing market in Atlanta. TrueWay Mortgage has helped many veterans and active-duty service members acquire VA loans in this market, paving the way for affordable homeownership.
Our team offers competitive interest rates that reduce the overall costs of your loan, so buying a house is an investment. TrueWay Mortgage’s experience in the Atlanta market makes us experts in navigating the real estate landscape.
Ready to start your journey toward owning a home in Atlanta? Call TrueWay Mortgage today at 404-962-0032 to discuss the VA loan program. Whether you have questions about the minimum credit score, down payment assistance, or qualifications for a VA home loan, we will work through the answers together.
