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VA Loans and Veteran Homeownership in Nevada

Downtown Las Vegas as seen from the Stratosphe...Image via Wikipedia

When Congress created the VA Home Loan Guaranty program in 1944, Las Vegas would have been unrecognizable compared to the city it has become today. Now, thanks to the federal government’s generous subsidized home loan program, military homebuyers have the ability to use a Nevada VA loan to purchase a home in Nevada. Because of their great terms, VA loans are popular among military members and have aided more than 19 million Vets in purchasing a home.

After picking out a home in Las Vegas, buyers must consider their financing options. Two things that are central to choosing a financing option are down payment requirements and interest rates. Military buyers in Las Vegas will be happy to learn that VA loans keep both far lower than traditional loans. In fact, in the VA loan program, homebuyers seldom make a down payment.

Interest rates are competitive in Nevada VA loans, too. It’s important to know that the VA does not issue loans, but guarantees up to 25 percent of each loan against an unlikely default. With the VA’s backing, VA-approved lenders like VA Mortgage Center and other national lending leaders take on less risk. Thus, they are inclined to provide lower interest rates to qualifying military personnel.

Other savings through a VA loan include lower closing and concession costs, no private mortgage insurance and no prepayment penalty. The latter two are especially helpful in saving military homebuyers money on a repeated basis. Not all the perks focus on saving money, though. For instance, the program comes with services to help borrowers when they are about to default on a loan (although to be fare, this doesn’t occur often with VA borrowers). Nevertheless, it’s nice to have a helping hand if you find yourself in a tight spot.

Additionally, Nellis Air Force Base is located just a few miles to the north, so Las Vegas is a great city for active-duty service members to look for a home. Interest rates are capped for active-duty personnel, so buying property near or at Nellis could be especially beneficial as the housing market continues to rebound. The VA loan limit in Nevada is the standard $417,000, allowing homebuyers to finance up to 100 percent of a home worth that much.

A Certificate of Eligibility (COE) is the first thing you need to get a Nevada VA loan. Via the VA website or a VA-approved lender, COEs affirm that you meet the qualifying terms for the program.

Generally, people who may qualify fall into one of three categories:

-Military members who served on active duty for 181 days or 90 days during peacetime or wartime, respectively.

-Reservists or members of the National Guard who served for at least half a dozen years.

-Spouses who have not remarried and survived their husband or wife who died in the line of duty or because of a service-related injury.

This post comes to you from James Kelley, an author of and law school student at the University of Missouri. 


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