What Is a VA Home Loan?
A VA loan in New Mexico is a special type of home loan that is only for veterans and active duty military members. These loans are meant to accelerate the process of buying a first home by eliminating the requirement for a down payment and having greatly reduced credit history requirements.
A VA loan is billed the same as a conventional mortgage; borrowers will know their interest rate and all fees associated with the loan before they agree to the terms. The borrower will also have a fixed monthly payment and a set payment term.
Types of VA Loans Available
VA loans and VA refinancing are both available in New Mexico. At Griffin Funding, we’re proud to offer the following types of VA home loans in New Mexico:
- VA purchase loan
- VA cash-out refinance
- VA streamline refinance
When searching for a VA loan in New Mexico, take the time to compare these options and determine which is best suited for your particular situation.
Areas We Serve
Griffin Funding provides mortgage loans across New Mexico. We are happy to provide potential and existing homeowners in New Mexico with VA loans and refinancing options in the following areas:
- Rio Rancho
- Las Cruces
- Santa Fe
- South Valley
What Are the Requirements for a VA Loan in New Mexico?
The requirements for a VA loan are the same no matter where you live. There are several requirements that people will need to meet in order to qualify for a VA loan. To start, it is absolutely necessary to obtain a VA certificate of eligibility. This certificate is only given to retired military, active-duty military, and qualified widows. It cannot be transferred or sold, not even to the children of a military member.
Be aware that it can take up to ninety days to get the certificate. Because of this, many people who are thinking about getting a VA loan apply even before they find the right home. If you have never applied for a certificate of eligibility before, don’t worry. Griffin Funding has years of experience in helping people through the VA funding process, so we can guide you through what you need to do to qualify.
Be aware that there are some requirements for VA loans that the property has to meet. All properties that are purchased with a VA loan have to go through a pest and appraisal inspection. While your realtor can review the details with you, be aware that it can be very difficult to purchase a home that needs extensive repairs with a VA loan.
Closing with a VA loan is very similar to the closing process for a conventional loan, but you will want a company that has experience with the nuances of VA loans in New Mexico. Fortunately, the staff at Griffin Funding has processed thousands of VA loans, and we know what to look out for.
What Is the Minimum Income for a VA Loan?
In order to qualify for a VA loan, borrowers will have to submit to an income check. While anyone who meets the eligibility can get a VA loan, the amount of that loan is up to the mortgage lender. While the exact formula is up to the lender, a general rule is that a lender will usually cap a mortgage at three times a borrower’s annual salary. Be aware, however, that these formulas can change, and are affected by current mortgage rates, other loan payments that you may have, and several other factors.
This means that while there is no official minimum income for a VA loan, it is important to determine how much you can spend on a house before you start shopping. For this reason, borrowers are strongly encouraged to get pre-approved for a VA loan before they start shopping for a property.
What Is the VA Loan Limit in New Mexico?
As of 2020, there are no more loan limits on VA loans. Prior to this, VA loans were capped, but today it is possible to get a loan for any amount as long as you have the income to qualify.
It is possible for a lender to assign different interest rates to different tiers of loans. For example, a “jumbo” or “high-balance” mortgage may have a slightly higher interest rate than VA loans that New Mexico borrowers can get for a lower principal payment.
Apply for a VA Home Loan in New Mexico Now
If you’re a veteran or active duty military member and you’re interested in buying a home, a VA loan can be a great choice. Millions of military members have used these loans to make a home purchase without having to provide a down payment. With competitive interest rates and a straightforward approval process, Griffin Funding is the right choice for everything from filing your application to your final meeting at the closing table.
If you think you qualify for a VA loan in New Mexico, start your application today. There is no obligation to accept the loan, and applying is the best way to find out how much you can qualify for.