Your VA Home Loan Benefit Is Unbeatable

Your VA Home Loan Benefit Is Unbeatable

Did you know that according to government data, fewer than 12 percent of the country's estimated 24 million active-duty and veterans are currently using their VA loan benefits? For many who qualify, the VA home loan is the best mortgage option. The loans are specifically designed to make homeownership possible for active-duty military personnel and veterans. The VA home loan requires no down payment or mortgage insurance, and it has lenient rules regarding qualifying. We have listed some of the top benefits below. Why not take the first step and verify your eligibility today? 

NO Down Payment! | Instead of paying up to 20% of the cost of the home as a downpayment, with a VA home loan, you can finance up to 100% of the purchase price. 

NO Mortgage Insurance! | With other home loans, you will be required to pay for mortgage insurance if you make a downpayment that is less than 20%. This insurance is known as Private Mortgage Insurance (PMI) for conventional loans, and Mortgage Insurance Premium (MIP) for FHA loans. It is insurance to protect the lender in the event you default on your loan. 

Since your VA loan requires neither a down payment nor mortgage insurance, it is very affordable for you upfront and over time. You can start earning equity right away with little outlay of your funds. 

Government Guarantee | The federal government guarantees VA home loans, meaning it will repay a portion of the loan if you are unable to make your monthly payments. This guarantee encourages lenders to offer VA home loans with very attractive terms. 

Competitive Interest Rates | VA home loans are not originated or funded by the VA, so the mortgage interest rates are not set by the government. This means that you can shop around and compare loan rates and terms and choose the loan that works best for your budget. 

NO Prepayment Penalty | There is no restriction on your right to sell the property anytime through your loan term. There is no prepayment penalty or early-exit fee. And, there are no restrictions regarding a refinance of your VA home loan. You can refinance your existing VA home loan into another VA loan with the agency’s Interest Rate Reduction Refinance Loan (IRRRL) program.  

Lots Of Options | VA home loans can have a fixed or adjustable interest rate. You can purchase a house, condominium home, duplex, manufactured home or other types of properties. The loan can be used for refinancing your existing mortgage, making home repairs or improvements, or for making your home more energy-efficient. 

Lower Closing Costs | The VA limits the closing costs that lenders can charge for VA home loans. The money you save on closing costs can be used for moving expenses, furniture, home improvements, or anything else you need. 

Funding Fee Flexibility | Your Va home loan funding fee is an upfront cost based on the loan amount, down payment size, type of eligible service, and other factors. The fee does not have to be paid in cash at closing. It can be financed with the loan. Not all VA borrowers pay this fee either. It is sometimes waived for veterans who have received VA disability compensation, and surviving spouses of veterans who died in service or as a result of a service-connected disability. 

VA Home Loans Are Assumable | VA home loans can be transferred to a future buyer if that person is VA-eligible. Assumable loans are often a huge benefit when you sell your home, especially in an environment of rising mortgage rates. 

As you can see, a VA home loan has many advantages. We recommend that you consider it as a top contender for your mortgage choice when beginning your home buying journey. If you have any questions, please connect with one of our Military Relocation Specialists today.

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