How To Obtain A VA Loan As A Retiree
If you are about to retire or if you are already retired, you may wish to take out another mortgage for a home, but you may worry that you won't be able to take out a mortgage if you're retired. You might worry that because you do not have as much of an income or no income at all, that mortgage lenders may be reluctant to offer you a mortgage. But there are ways to afford a home and obtain a VA loan after you retire.
Downsizing
When retiring, you may not be able to afford a home as large as what you had before, but you may be able to afford less expensive homes. This may even be a better choice when your children move out, and you feel you do not need as large a home. Larger homes can be more difficult to care for.
The Benefits of a VA Loan
There are many reasons why retirees should consider VA loans over other types of mortgages. For one, you do not need a down payment. You will typically have a lower interest rate, and the lenders will be more willing to work with retirees. Also, even if you do not have the best credit score, you may still be able to qualify for a VA loan. However, whether you are eligible is also based on how long you served in the military.
Qualifying for a VA Loan
Having a great savings can make it easier to qualify for a mortgage. However, you may also need to do whatever possible to show that you have an income that will allow you to not only make mortgage payments but also afford to live. Typically, retirees will include their pension and Social Security benefits as part of their income. If you have children who intend to live with you for a few years, they can be used as part of your income. Another approach is to rent out a room in your home, which can be counted as another source of income.
To prove that you have an income, you must demonstrate your income through bank statements, IRS documents, and awards letters. Also, you must prove that your income will continue for at least three years. The more of a history of payments you can demonstrate, the more likely you will qualify for a VA loan and will have the retirement house of your dreams.
For more information, contact a company like VA Loan Lending.
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