Houston, alongside Austin, is one of the most important metropolises of the Cowboy State. It vaunts high-rise steel skyscrapers and a great number of tourists’ spots, besides being a commercial hub. Many Fortune 500 companies have set base here, and a great number of the military fraternity emanates from here to go serve the nation at home or abroad. What better way to recompense returning servicemen who have had no time to scrape together savings than provide a mortgage that suits their family needs! This is the good work that the VA loan Houston accomplishes.
The following is a highlight of qualifications, facts and limits for the VA loan Houston. The follow-up will be a dissection of multiple cities that surround the Houston area within the jurisdiction that the state-wide loan program covers.
To qualify for the VA loan Houston, one should have been in a war front for at least 90 days or have served for 181 days in peace time, in a military capacity. The loan is available to serving army personnel who have found time to go search for a home in the interim of retuning to duty. It is also available to ex-servicemen or veterans who want to settle after retirement. The fact that they need to access a residence without suffering too much out-of-pocket costs obliges the government to support them by offering a loan program that is free of down payment and other stringent requirements that normally apply to conventional loans. Here are the characteristics of the VA loan Houston:
- This is the only loan program other than USDA, which comes without the money down provision that is mandatory in other loans.
- Anyone with qualifications in the military has a right to access a home via this program.
- The loan comes at a fixed rate of between 3.06 percent and 5.56 percent at maximum (this is as per the May 2013 period). The rate of 3.06 percent applies to maimed veterans while the 5.56 percent rate applies to applicants who are generally in good condition.
Another important feature of the VA loan Houston process is the appraisal part. This takes place in a systematic manner. Here is a case scenario: the borrower goes to a loan officer and they together come up with a figure that the borrower qualifies for. The veteran then forwards the information to the potential lender and the Veterans Authority guarantees it. The lender then gets in touch with an appraisal firm that the Veterans Administration has already licensed to do the work. The appraisal firm works in cohort with the borrower to ascertain the condition and value of the property. It’s important to note that the value of the property that the appraisal comes up with is devoid of an in-depth inspection, but still suffices to offer a value that does not exceed a county’s guaranteeing limits.
Because the appraisal may not cover the very innards of a house such as its overhaul condition, a veteran may need to hire the service of a residence inspector. The inspector will be able to examine every plank, roofing material and drainage pipe, and give a green light for refurbishment, thereof. Thus, the VA loan Houston may cover much more than the face value of a residence.
Revised Limits for Greater Houston and Surrounding Areas
In the first quarter of 2012, the Veterans Administration did a review of borrowing limits for the Texas state. The earlier limit for a single unit residence was $325000 but this rate is now $417000. One notable fact about VA loan Houston and any other similar mortgage is that the Veterans Authority never imposes limits to which one can borrow, but instead offers a limit up to which it can guarantee a loan.
For instance, VA will only support 25% of a VA loan Houston of up to $417000 in any Texas county, this being the highest guarantor’s limit, but not income limit. This means that for a mortgage worth $417000, VA will guarantee 25/100*417000 which comes to $104250.
Here is the latest chart of the revised guarantee limits for the following cities.
- Houston: Single-$417000. Upper Limit-$1000000
- Conroe: Single-$417000. Upper Limit-$1000000
- The Woodlands: Single-$417000. Upper Limit-$1000000
- Magnolia: Single-$417000. Upper Limit-$1000000
- Tomball: Single-$417000. Upper Limit-$1000000
- Cypress: Single-$417000. Upper Limit-$1000000
- Spring: Single-$417000. Upper Limit-$1000000
- New Caney: Single-$417000. Upper Limit-$1000000
- Liberty: Single-$417000. Upper Limit-$1000000
- Kingwood: Single-$417000. Upper Limit-$1000000
- Greater Houston: Single-$417000. Upper Limit- $1000000
- Katy: Single-$417000. Upper Limit-$1000000
- Sugar Land: Single-$417000. Upper Limit-$1000000
- Pearland: Single-$417000. Upper Limit-$100000
- Clear Lake: Single-$417000. Upper Limit-$1000000
- League City: Single-$417000. Upper Limit-$1000000
- La Porte: Single-$417000. Upper Limit-$1000000
- Baytown: Single-$417000. Upper Limit-$1000000
- River Oaks: Single-$417000. Upper Limit-$1000000
- Texas City: Single-$417000. Upper Limit-$1000000
- Galveston: Single-$417000. Upper Limit-$1000000