Madison is home to the state capital, the University of Wisconsin, a strong family community, and consistently ranks among the top U.S. cities to live in.
For most homebuyers wanting to purchase a home in Madison, they have limited financing options. However, military homebuyers—in return for the service to their country—get exclusive access to a federal loan program through the Department of Veterans Affairs. For almost seven decades, VA loans have made homeowners out of service members and veterans, all the while saving them money.
There is no shortage of financial advantages with the VA home loan program.
Low Rates. One of the highlighted benefits is certainly the competitive interest rates that can dip lower than market rates. Since the VA insures up to 25 percent of each loan, VA-certified lenders take on less risk. As a result, the lenders are willing to shrink interest rates.
Zero Down. Another glaring advantage to the program is the option for a zero down payment. Serving in the military requires constant moves and deployments, which can strongly affect a borrower’s credit and savings. Through the VA loan program, qualified borrowers can finance 100 percent of their home without putting a cent down. This means for Madison, a service member can purchase a home worth up to $417,000 without putting a penny down.
Low costs. Other benefits include: a.. No Private Mortgage Insurance (PMI) b.. No prepayment penalties c.. VA Streamline, refinancing options Eligibility for the VA loan program depends on service history and type of discharge. Those who received a dishonorable discharge are ineligible.
Those who may be eligible for a Wisconsin VA loan: a.. Served on active duty for 90 days during wartime or 181 days during peacetime b.. Served in the Reserves or National Guard for at least six years c.. Are a spouse of a service member who died due to a service-related injury or in the line of duty The first step in getting a VA loan is filling out a Certificate of Eligibility (COE). VA-certified lenders and the VA website have the COE form, though lenders often process COEs faster than the VA. A COE simply ensures that you meet the initial eligibility requirements for a VA loan. Even if your credit and financial backgrounds are not perfect, it is likely you will still qualify for a Madison VA loan. Lenders look for scores of at least 620 and a foreclosure or bankruptcy will not immediately disqualify you; neither will a moderately high debt-to-income ratio as long as it is lower than 41 percent.
RealEstateGuy has been a full time, full service Realtor since 1993. He is dedicated to helping people achieve their Real Estate Goals and dreams. In order to provide more specialized service, he created a team of hand picked specialists. Guy believes in constantly learning more, so regularly attends national seminars and trainings. Guy has been a top producer, leader in his office, a president of the Wisconsin chapter of CRS, and has spoken at the State Realtor Conventions.
