Home ownership is a wonderful thing; however, securing proper financial support to buy a home is not an easy thing to do. Fortunately, there are special home loan programs for veterans that make the process of obtaining a mortgage easier. VA home loans are accepted as one of the most powerful loan options today for active military service members and veterans. It is true that it is difficult for military borrowers to build the assets and credit which are necessary to get approved for home financing due to the fact that they are busy protecting and serving The United States of America.
If you are an active duty military service member or a veteran and you are planning to have your own home, then a VA Loan can be a great option for you. VA home loans have amazing advantages and they have become very popular among many of our nation’s heroes who have served our country over the last five years.
If you are serving our country or have served our country, take time to learn about the benefits of obtaining a VA Loan as an effective path to home ownership:
- No Need of Down Payment – If you are a qualified veteran, there is no need to make a down payment. This is helpful to save a lot money monthly in comparison with conventional and FHA loans.
- No Mortgage Insurance – With conventional and FHA loans, the borrower needs to maintain monthly mortgage insurance. Collectively, those who have secured VA Loans have saved more than $40 billion in private mortgage insurance expense over the life span of their loans. On the contrary, conventional borrowers, even those who cannot put down twenty-percent, must pay private mortgage insurance.
- Flexible Credit Requirements – The Department of Veterans Affairs supervises the VA loan program and they do not question loans nor do they set credit score minimums. VA loans are more forgiving when it comes to bouncing back after a insolvency, foreclosure or short sale.
- Lower Interest Rates – The Department of Veterans Affairs guarantees a part of each VA loan and that’s why financial institution can offer comparatively lower interest rates for VA home loans. Generally, VA interest rates are between 0.5% – 1.0% percent lower than conventional loan’s interest rates. Interest rates depend on the inherent risk implied by the lender to finance the loan. Through the VA guarantee, lenders get a sense of security that helps them to offer comparatively lower rates.
- Closing Cost Limits – Generally, all mortgages come with fees and closing costs which give financial institutions an incentive to lend money. However, when it comes to VA home loans, there are limits to how much veterans can be charged for these expenses. In the transaction process, some costs and fees get covered by other parties. These safeguards are extremely helpful to veterans and they make the process of becoming a home owner more affordable.
The VA home loan program was established to support active military members and veterans, who have honorably served our country.