When shopping for a VA loan in Texas, Veterans United is often one of the first lenders people consider. But how does it compare to other mortgage lenders? What are the pros and cons?
If you're interested in a VA loan, you deserve to know how Veterans United compares to other lenders for VA loans in Texas. That's why we took the time to look at Veterans United and some of its competitors.
What is a VA Loan?
A VA loan is a mortgage that is backed by the U.S. Department of Veterans Affairs. These loans are available to veterans, active service members, and their spouses. VA loans can be used to purchase a home or refinance an existing mortgage.
Who qualifies?
To qualify for a VA loan, you must have served in the military, been honorably discharged, and meet the length-of-service requirements. You also need to have a good credit score and sufficient income to make your monthly payments.
How it works
VA loans are made by private lenders and are guaranteed by the government. This means that if you default on your loan, the government will pay back the lender. This guarantee makes lenders more willing to give veterans favorable terms, such as low interest rates and no down payment.
VA loan benefit
VA loan entitlement is the dollar amount the Department of Veterans Affairs will guarantee on each VA home loan and helps determine how much a veteran can borrow before needing a down payment. VA loan entitlement is typically either $36,000 or 25% of the loan amount up to the conforming loan limit.
VA loans versus conventional loans
VA loans typically have lower interest rates than conventional loans. They also do not require a down payment, which can make them more affordable for veterans.
Additionally, VA loans do not require private mortgage insurance (PMI), which can save veterans hundreds of dollars per year. Veterans can often get a better interest rate when they opt for a VA home loan instead of a conventional loan.
VA loans versus USDA loans
VA loans are not the same as USDA loans, which are also available to veterans. USDA loans are made by the U.S. Department of Agriculture and are available to veterans who want to purchase a home in a rural area.
Like VA loans, USDA loans don't require a down payment or private mortgage insurance. This makes them very appealing to borrowers!
USDA loans have different eligibility requirements than VA loans. Additionally, USDA loans typically have lower interest rates than VA loans. However, USDA loans have some property and income restrictions.
It's vital to find a mortgage lender who understands BOTH options to help you make the best decision.
Can you get home equity loans with a VA mortgage?
The short answer is yes, you can. You can borrow home equity lines of cash against your home with a VA mortgage in place. However, there is no such thing as an official VA home equity loan. You can also do a VA cash out refinance.
Is Veterans United Home Loans the only option?
No, there are other options available for veterans looking for VA loans in Texas. Some of the other lenders include Rocket Mortgage, USAA, and Texas United Mortgage.
Each of these lenders has its own pros and cons, so it's important to compare them and understand the differences before choosing one. Consider what your priorities are and see how closely each option aligns with your needs and goals.
Best VA mortgage lenders
The best VA home loan program lender for you will depend on your individual needs and circumstances. It will also depend on where you're located.
But off the bat, there are some general criteria that you can use to compare lenders. These include interest rates, fees, customer service, and loan terms.
Veterans United
Pros:
- Offers real estate services
- Broad selection of veteran-focused loans
- Good customer service
Cons:
- Limited geographical areas served
- No HELOC products
Rocket Mortgage
Pros:
- Fast and easy online application process
- Available in all 50 states
Cons:
- No HELOCs or USDA loans
- No physical locations or personalized service
USAA
Pros:
- Available to veterans, active service members, and their families
- Competitive interest rates
Cons:
- Fewer mortgage offerings
- Difficult to find info online
Navy Federal Credit Union
Pros:
- Available to veterans, active service members, and their families
- Competitive interest rates
Cons:
- Not available in all states
- Not always the best rates
- Customized rates are only offered to members
Texas United Mortgage
Pros:
- Local lender with personal service
- Customized loan options
- Help with credit score and down payment assistance programs
Cons:
- Currently limited to Texas
Why working with a local mortgage lender is best
There are several reasons why working with a local mortgage lender is the best option for veterans. These include:
- Help with credit score
Local lenders can help veterans improve their credit scores, which can save them money on their loans. For example, a higher credit score may help veterans qualify for a lower interest rate. Local lenders are more available to assist customers with working on credit scores.
- Information about local assistance programs
Local lenders have information about state and local assistance programs that veterans may not be aware of. These programs can help veterans with their down payment or closing costs. In Texas, this is especially relevant since there are so many state and even city-specific programs.
- Better customer service
Local lenders typically have better customer service than national lenders. This is because they are more familiar with the local market and can provide personalized service. Instead of dealing with a national call center, you'll have a direct relationship with a real person in a local office.
- Help with Jumbo VA loans
Local lenders are more likely to be familiar with Jumbo VA loans, which are available for veterans who need to finance a high-priced home. Whatever VA loan products you need, local VA lenders will be best equipped to customize your service and maximize your VA loan program benefits.
Choosing a Mortgage Lender for Your VA Loan
When choosing a lender for your VA loan, it's important to compare all of your options. You should look at interest rates, fees, customer service, and loan terms. It's also a good idea to work with a local lender who is familiar with the Texas market and can help you with your down payment or closing costs.
Getting Started
If you're looking for a VA loan in Texas, Texas United Mortgage is the best option. We offer low interest rates and plenty of personalized knowledge and assistance to get you the best deal on a VA loan in Texas. Ready to get started? Fill out our online form and we’ll get back to you right away!
