When people start talking financing for a home purchase, some are amazed by the variety of loan products out there. There are many types of home loans out there: conventional, 80/10, FHA, Rural Development, and much more. One type that we do not commonly see utilized is VA loans.
VA loans are available for Veterans of the US Service Branches. VA guaranteed loans are loans made by private lenders that are then guaranteed by the federal government in case of default.
VA loans offer several benefits for home buyers. They can often be made with no downpayment required. The interest rates are quite favorable. There is no private mortgage insurance required. The loans are assumable. Closing costs are often comparable to or lower than other types of loans.
Being a veteran does not guarantee that you will be able to obtain a home loan, though. The lender still will have credit and income requirements, and recent bankruptcies may disqualify you from obtaining a VA loan for a while.
A VA loan is a great option, so be sure to talk with your Realtor and your lender about them if you are a veteran. For additional information, please talk with your local VA office or visit the VA website.
Veterans, your service to our country is invaluable. Let us say thank you with the favorable terms of a VA loan.