The American dream of owning a home is alive and well in Shreveport, Louisiana! Louisiana’s homeownership percentage of 70% surpasses that of the national average of around 65%, with many lenders offering VA loans in Shreveport to bolster the city’s numbers even more.

Let’s explore the topic of VA loans in Shreveport, available to veterans of the United States armed forces or their spouses.

What Is a VA Home Loan?

Veterans Affairs (VA) assists servicemembers, veterans, and eligible surviving spouses to become homeowners. VA provides home loan guarantee benefits and other housing-related programs designed to help buyers purchase, build, repair, retain, or adapt a home for their own occupancy.

Private lenders, such as banks and mortgage companies provide VA Loans. VA guarantees a portion of the loan, which enables the lender to provide more favorable terms to the buyer with no undue risk.

Here are some recent statistics about VA loans:

    • The average loan amount is $246,000.

    • The average loan term is 30 years.

    • There are over 20 lenders in the Shreveport area who offer VA loans.


Advantages of a VA Home Loan

There are many! Keep in mind that VA loans are designed to support veterans and active-duty military personnel in our country in buying a home. The VA attempts to achieve that goal by making the process as easy as possible and providing incentives to become a homeowner.

Here are the primary advantages:

    • No down payment is required by the VA.

    • Competitively low-interest rates.

    • Limited closing costs and fees charged to the veteran.

    • No need for Private Mortgage Insurance (PMI).

    • The VA home loan is a lifetime benefit; you can use it multiple times.

Eligibility Requirements for a VA Home Loan

In addition to being a veteran, active-duty service member, or surviving spouse of a veteran of the armed forces in the U.S., there are other eligibility requirements for a VA home loan in Shreveport: 

    • The borrower must have a good credit history.

    • The borrower must have sufficient income to qualify for the loan. 

    • The home must be for the borrower’s personal occupancy.

    • The borrower must have satisfactory VA Entitlement for the service member or the spouse of a service member who is missing in action or has died.

Borrowing Limits for VA Home Loans

There are no maximum loan amounts set by the VA. This is determined by the lender and is based on the value of the home you are purchasing. 

The lender will then look at the following factors to determine the amount they will loan you:

    • Your credit score

    • Your income

    • Your debt-to-income ratio

    • The type of property you are purchasing 

Buyers have many questions about a qualifying credit score. The credit score is part of the qualification process, but the approval considers all of the above factors.  VA issues  guidelines for lenders to follow, and all credit scores are considered.

The Application and Buying Process for a VA Home Loan

The process begins with the lender obtaining the Certificate of Eligibility from the VA during prequalification.  Once that information is approved, the rest of the homebuying process is similar to purchasing any other home. Look at your current financial stability, choose a bank or other mortgage lender that is an approved VA lender, find a real estate agent, and then shop for your new home!

To learn more or to get preapproved for your new VA Home Loan Click here!