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VA Home Loan Rates And 2012 Loan Limits In Detail

Aspects to Consider Before Applying for a VA Loan


VA loans have been considered a very attractive mortgage type ever since they were first introduced in 1944, but in terms of VA home loan rates, 2012 was an even more important year: that was when the new guidelines still applicable today have been introduced.


What Makes VA Home Loans So Popular


The real estate market has been a highly volatile and rapidly changing one for years now, but even so, a 100% financing option still makes real estate purchases easy and this is exactly what VA loans offer. When it comes to the regulations that determine the amounts available with these loans as well as the VA home loan rates, 2012 guidelines continue to define the sums available: in most counties across the country, the upper limit for VA loans is $417,000, with the exception of some areas defined as high-cost markets such as California, Hawaii, Utah, New York or New Jersey, where the loan limits are much higher.


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VA Home Loan Rates – 2012 Changes and Their Influence Today


In terms of VA loan rates, 2012 guideline changes have not modified too much, the rates having been favorable before the new guidelines and staying favorable afterwards too.


In many ways, VA home loans work like any other mortgage. Any loan entails a certain risk for the lender, so the better the borrower’s credit score and the higher the repayment rate, the lower the loan rate. One of the major differences between a VA home loan and a conventional mortgage is that VA loans don’t require the borrower to make a downpayment or, to be more precise, VA loans don’t allow the borrower to make a downpayment, which also means that the amount of downpayment cannot influence the interest rates, it is only the credit score, the loan term and the interest type chosen that counts.


Another aspect that makes VA loans similar to other loan types is that different lenders offer different conditions. Some are willing to offer very low interest rates, but they approve applications only from borrowers with excellent credit scores. Others work with somewhat higher rates, but they provide loans to those who have lower scores as well.


Getting the General Picture – How to Get the Best Rates


To be able to make the best decision, it is always recommended to have mortgage quotes from several lenders prior to submitting your loan application. Make sure you formulate your request as specifically as possible and always compare the quotes issued for the same parameters. You cannot compare a quote for 25-year fixed rate loan from one lender to a 15-year variable interest loan from another lender.


The interest charged on VA loans is 3.47-3.5%, making these loans way more favorable than any other loan types. If you take into account the most important aspects such as the quotes you receive for VA loan rates, 2012 guidelines for loan limits, and all other details regarding the terms of the debt, you will be able to enjoy living in your dream home without having to stress over repayment deadlines, that’s for sure.


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