South Dakota VA Loans
If you are a qualified veteran looking to buy or build a new house in South Dakota, right now is a great time to do so with a VA Loan. In 1944 the VA created the Home Loan Guaranty Program which has helped millions of veterans and their families become first time homeowners. The program has many benefits that make the entire loan process easy and affordable for its current military members and veterans.
What is a VA Loan?
A VA Loan is actually a guaranty on a private loan. What this means is you receive a loan from a private lender and the VA will guaranty a percentage of the loan for you. Basic entitlement is $36,000 or up to 25% of the total cost of the loan. This is how much the VA will pay your lender if you should default on the loan and go into foreclosure. Basically, the VA is insuring the loan for you and making you a secure and desirable borrower.
What are the benefits?
The first major benefit of a VA Loan is you are not required to provide a down payment on the house. Conventional loans can sometimes require as much as 20% for the down payment, which gets very expensive if you’re looking into purchasing a big family house. Another great benefit of a VA Loan is you don’t have to pay and private monthly mortgage insurance. In addition to these two great features, you also get low interest rates, minimal closing fees, flexible repayment options, quick approval and easy refinancing.
How do I qualify?
If you are a current member of the military, you can qualify for a VA Loan after serving 181 days of regular active-duty service. This timeframe also applies to ex-military personnel who were discharged under honorable circumstances. To establish your eligibility, you or your lender will need to fill out the eligibility form with the VA who will then issue you a Certificate of Eligibility through the mail.
How do I get started?
If you are interested in taking advantage of all the great benefits of using a VA Loan to purchase your new house in South Dakota, take a minute to fill out our secure, online form. It doesn’t take very much time, and you’ll be on your way to becoming a proud homeowner in no time!