Are you or your spouse currently serving in the military? Have you or your spouse served in the past and were honorably discharged? Want to buy a St George home? First of all, thank you for your service. Your sacrifice is greatly appreciated. Next, let me tell you about what military home financing options you have available to you.
Military Home Financing Options for St George Homebuyers
The first and most popular of your military home financing options comes in the form of VA loan. I spoke about VA loans a few weeks ago. The Veterans Administration (VA) backs these home loans. Qualifying former and current members of the various branches of the armed forces and National Guard may be eligible to purchase a St George home with absolutely no money down. You also avoid paying private mortgage insurance (PMI). This helps you get into a St George home with no initial output of cash. However, restrictions apply. The home must be move-in ready and must be your primary residence.
While not limited to just vets, another one of the military home financing options is the USDA loan. First of all, the property in question must be located within a rural area (population of less than 25,000 people). This loan benefits buyers in the low to moderate income range. As long as your income doesn’t exceed 115% of the adjusted area moderate income, you have a good credit history, you have no delinquencies or judgments against you, and you cannot qualify for a conventional loan, you might want to consider a USDA loan. While no minimum credit score is required, you need to show the ability to pay the loan back. That means no more than one delinquency in the last 12 months and a steady stream of verifiable income over the past two years.
Interested in a St George “fixer-upper”? Then an FHA loan may be the military home financing option for you. Unlike VA loans, the FHA loan allows you to purchase a property that is not move-in ready. You will need to come up with a down payment. Some loans allow as little as 3.5% down. However, anything less than 20% of the sale price means you pay PMI as well. Your credit score must be at least 580 to qualify, too.
The final option to consider is the conventional loan. These aren’t backed by any government entities. Most of these require a credit score of at least 620. However, some lenders may go as low as 580. You may qualify for as little as 3% down with a conventional loan. But, this also comes with PMI (for any down payment less than 20% of the sale price).
When considering any of these military home financing options, you should speak with your loan officer first. One option may be more beneficial to you than the others. If you have any questions, please feel free to contact me. I’d be happy to provide you the answer or, at the very least, point you in the right direction.
For more information on this and other St George homes for sale, please visit my Featured Listings page.