Being a military veteran comes with some great benefits, especially when it comes to home loans. Veterans who want to purchase a home can do so with a VA (Veteran Affairs) loan. The goal of the VA loan program is to make homeownership feasible for active and retired military personnel. The Department of Veteran Affairs makes buying a home easier for Veterans through the VA home loan program. Find out the top 5 advantages of the VA loan program:
- A Down Payment is Not Required- One of the biggest advantages of a VA loan is that a borrower does not have to pay any money toward a down payment. This is the only mortgage loan where a buyer does not have put money down to secure a loan. The reason for this is because VA loans are made by private lenders whereas for other loans the bank, mortgage company and other lenders put the funds toward the purchase of your home.
- Do Not Have to Pay Private Mortgage Insurance- VA borrowers do not have to pay private mortgage insurance if they do not have a 20% down payment toward their home. This is significant because private mortgage insurance can add $100 or more to a borrower’s mortgage payment each month. This benefit can save VA borrowers thousands of dollars over the life of the loan.
- You Can Use the VA Loan Benefit Numerous Times- A big misconception of a VA loan is that borrowers believe they can only use this program one time. There is not a limit on the number of times a borrower can use the VA loan program. Veterans who served our country earn this benefit for the rest of their life and can use this loan program as many times as needed.
- VA Loan Interest Rates Are Typically Lower- The interest rates for a VA loan are very competitive and typically lower than a conventional loan because it is guaranteed by the Department of Veteran Affairs. Since the Department of Veteran Affairs backs this particular loan, financial institutions feel more secure and can offer lower interest rates.
- Flexible Approval Guidelines- Veterans do not need to have perfect credit to secure a VA home loan because the Department of Veteran Affairs oversees the program. The Department of Veteran Affairs is not a lender and therefore it does not require minimum credit scores. This is a significant benefit because most conventional loans have a minimum credit score benchmark that must be met to receive a competitive interest rate.
If you are a Veteran and would like learn more about the VA program, give one of our senior mortgage specialists a call at (877) 788-4564 or to receive a free quote click here >> http://bit.ly/2iZFPFM