VA Loans in Georgia
Buying a home is an exciting life stage but can also be very intimidating. As one of the most significant investments you will ever make, it can be challenging to commit to paying a mortgage. Although the reward of owning a home is often worth the cost, many people are overwhelmed by the financial barriers and feel locked out of becoming homeowners.
If you are in the market for a house in Georgia, you must find the right mortgage product to suit your financial needs. Veterans, active-duty service members, and surviving spouses can qualify for a product called a VA loan. A VA home loan is insured by the Department of Veterans Affairs, allowing mortgage lenders to offer more favorable terms.
Some benefits of Georgia VA loans include no down payments, no private mortgage insurance (PMI), and competitive interest rates. Government backed loans offer flexible loan limits depending on your VA entitlement. Other factors vary depending on your finances.
The right lending partner can help military veterans and their families purchase homes in Georgia with VA home loans. At TrueWay Mortgage, we are committed to serving the military community in this state and helping them achieve their homeownership dreams. A professional loan officer can help explain how VA loans work.
Why Choose a VA Loan in Georgia?
The federal government created VA mortgage programs to make homeownership more affordable for eligible borrowers. If you are a veteran, active service member, or surviving spouse, you may qualify for Georgia VA loans that make purchasing a house far more accessible.
The key benefits of a VA loan, such as no down payments and no mortgage insurance, ensure the costs of buying a home are kept as low as possible. In most cases, securing a VA loan for your home will save you money now and in the future compared to other mortgage products like conventional loans.
The Georgia Department of Community Affairs also offers various programs through the Georgia Dream programs to help eligible individuals with the purchase price or down payment. Eligibility requirements vary by program; these programs usually can’t be used for an existing home.
Even though Georgia VA loans immensely benefit qualified homebuyers, navigating the mortgage process can still be confusing. TrueWay Mortgage simplifies the process for borrowers so you can find the financing solution you need.
Key Benefits of VA Loans for Georgia Homebuyers
A VA home loan is a better alternative for purchasing a home in the Peach State. The lack of a down payment requirement and insurance premiums make the upfront costs and monthly payments cheaper. Lower interest rates also reduce the total cost of the loan.
No Down Payment Requirement
In a typical real estate transaction, the borrower will pay some money upfront to reduce the total loan amount, called a down payment. Conventional lenders often demand down payments of at least 3% at minimum, but most seek out borrowers who can pay 10% or more. Even an FHA loan, designed for moderate-income borrowers, requires a 3.5% down payment.
If you are a veteran, active military service member, or surviving spouse, you can finance 100% of the cost of the home under a certain limit. For example, if you purchase a $400,000 home in Georgia with a conventional mortgage, your down payment will be at least $12,000. You can avoid paying that amount upfront with the VA home loan benefit.
VA loan limits govern how much you can borrow without covering a down payment. In all Georgia counties, the current VA loan limits are $806,500. This means you can only avoid a down payment if you purchase a home for less than that amount. You can still borrow above that loan amount, but it will require a down payment.
Our team at TrueWay Mortgage is dedicated to helping military borrowers fully utilize the zero-down payment option. If you have questions about the VA loan limits and how they affect your purchase, we’ll provide the answers you need.
No Private Mortgage Insurance (PMI)
When private lenders assess borrowers for home loans, they are mostly concerned with risk. The riskier a borrower is, the more the lender may demand to maximize their money-making chances.
Typically, when a borrower pays a low down payment, the increased risk is balanced by the lender charging mortgage insurance. This premium is calculated as an annual premium and paid monthly.
Georgia VA loans ensure borrowers will not have to pay these premiums, even with no money paid upfront for the loan. Without these insurance premiums, your monthly payment will be reduced. The purpose of this benefit is to lower the ongoing costs of homeownership so more military borrowers can accomplish their goals.
At TrueWay Mortgage, we understand the importance of affordable homes. Our team will ensure you can take advantage of this benefit with a VA home loan.
Competitive Interest Rates
Interest rates, sometimes called mortgage rates, affect the overall cost of borrowing money and your monthly payments. The higher the mortgage rate, the more money you spend on the loan. Market conditions determine mortgage rates, your credit score, such as if you have a high or middle score, and the individual lender.
By offering more competitive rates on VA loans, this program makes homeownership much cheaper. You will spend far less money throughout the loan than you would for a comparable conventional mortgage.
TrueWay Mortgage can offer a lower rate to reduce your monthly payment and the loan's overall cost. We’ll explain how VA loans work, verify your credit score, and help you determine the right loan type for your next home purchase.
VA Loan Eligibility in Georgia
Veterans, active-duty service members, and eligible surviving spouses can use this program if they meet all the eligibility requirements. Let’s look at these qualification standards closely so you can assess your VA eligibility.
Certificate of Eligibility (COE)
You cannot be approved for a VA mortgage without a Certificate of Eligibility from the VA. This formal document from the VA confirms your eligibility for VA financing. There are several ways to obtain this document. You can request it online, by mail, or through your VA-approved lender. If you need help obtaining your COE, TrueWay Mortgage can help you initiate the home-buying process in Georgia.
Service and Military Requirements
One of the key requirements for full VA loan entitlement is military service. You must meet one of these conditions to qualify for the program:
- At least 90 days of service during wartime
- At least 181 days of service during peacetime
- At least 6 creditable years in the National Guard or Reserves
- Be married to a veteran who passed away in the line of duty or from a service-connected disability
There are a few more specific conditions within these categories that you must meet to acquire a VA mortgage, but these are the general requirements. TrueWay Mortgage can help you understand your eligibility for VA financing. We can also help you learn about the VA funding fee.
Credit and Income Requirements for Georgia Borrowers
Since the lender will need to assess your risk as a borrower, there are credit approval and income requirements you must meet to be approved for a loan. Although the Department of Veterans Affairs does not set credit score or income requirements, lenders do.
Generally, the minimum credit score for a VA loan is 620, though your lender could make an exception for a lower score based on your financial situation. Similarly, the lender may require a maximum debt-to-income ratio of 43%, though some exceptions are possible up to 50%. TrueWay Mortgage can guide borrowers to help them understand and meet these criteria.
Types of VA Loans Available in Georgia
Although most people assume VA loans are just for purchasing homes, there are several products you can acquire to pursue financial goals. The three primary options are a purchase loan, an interest rate reduction refinance loan, and a cash-out refinance. TrueWay Mortgage will help you choose the option that fits your situation.
VA Purchase Loan for Georgia Homebuyers
If you plan to buy a new home in Georgia, you will apply for a purchase loan. This is the standard VA loan product. Our team at TrueWay Mortgage will help you navigate the loan process if you want to buy a residential property to serve as your primary residence.
VA Cash-Out Refinance for Georgia Veterans
There are several refinancing options if you bought your current home with a VA mortgage. A cash-out refinance is an opportunity to tap into your equity by taking out a new loan on your home that is greater than the remaining balance. You receive the difference as a lump-sum payment, which can be used to pay off other debts or fund home improvements.
Another refinancing option is an interest rate reduction refinance loan (IRRRL). This new loan lowers monthly payments to make homeownership more affordable. An IRRRL is an excellent option if you have owned the home for several years and built significant equity. TrueWay Mortgage will help you understand your refinancing options and choose the best option.
Why Choose TrueWay Mortgage for VA Loans in Georgia?
The right lender can make all the difference in your home-buying journey in Georgia. TrueWay Mortgage understands how VA loans work to benefit military borrowers and their families. We also have deep knowledge of the local housing market in the Peach State.
Our team is firmly committed to serving military families and helping them achieve their dreams of homeownership. At TrueWay Mortgage, acquiring a mortgage is a stress-free experience, thanks to a streamlined and straightforward process.
Experienced agents can help debunk common myths, such as the one that says you don’t have to pay property taxes if you qualify for a VA loan. This is a common misconception; the government can foreclose on your house if you don’t pay property taxes. We can also connect you with a reputable real estate agent.
Begin Your VA Loan Journey in Georgia Today
If you are in the market for a primary residence in Georgia and qualify for VA mortgages, a loan officer from TrueWay Mortgage is waiting for your call. We know what it takes to guide veterans, active-duty service members, and surviving spouses through the mortgage process to increase their chances of finding affordable homes.
Whether you are purchasing your first home or attempting to refinance and save money with your current property, we are committed to serving the military community in Georgia. Call us today at 404-962-0032 to learn more about our mortgage products and the VA loan program.