February 25, 2016, by Lizzie Weakley – If you are in college and are a veteran, you might have put off buying a home. Maybe you don’t have a down payment or you don’t think you can keep up with the monthly payments. In fact, as a Veteran, you may find it surprisingly easy to qualify for a home loan even when you still in college.
Why Get a Student VA Loan
There are two primary, personal reasons for wanting to apply for a VA loan while still a student. Maybe you are in a hurry to become more established in life, and owning a home seems like a logical step. Owning a home can also be a great way to build wealth, if you plan to stay for many years.
Five Lesser-Known Reasons
Applying for a VA loan also makes sense for at least three other reasons:
1. Many major lenders are making VA loans now, so there are bound to options for anyone.
2. You can get professional help getting great rates from companies like Low VA Rates. If you want a conventional mortgage loan, you might be on your own.
3. You will pay less than you might think. Forget about current mortgage rates from traditional lenders. While you might end up paying that rate, you might be pleasantly surprised.
4. Many student veterans can get a home with no down payment. Whether this is an option for you depends on your entitlement amount, credit score, and income. The appraised value of the house obviously matters as well.
5. Refinancing and cashing out are easier if you are a student veteran. The VA has details on how to do that.
Get Help, Save on Interest
Getting a discount on your mortgage interest can seem like a small thing. It seems like 5.0% isn’t much less than 6.0%, but the small numbers are deceptive. Shop around a bit or get help to find a low rate, because the difference in 5.5% and 6.0% really adds up over a 30 year mortgage. At 5% a 200,000 mortgage costs $1,073 per month. At 6% you are paying $1,199 a month.
VA Loans for Students Make Sense
If you are a veteran and a student, there are all sorts of reasons to apply for a VA mortgage loan even if you are a student. You can buy a home with no money down and pay a discounted interested rate, for example. Smart shopping can make owning a home surprisingly affordable.
Author Bio: My name is Lizzie Weakley and I am a freelance writer from Columbus, Ohio. I went to college at The Ohio State University where I studied communications. I enjoy the outdoors and long walks in the park with my 3 year old husky Snowball.