Why You Should Get a VA Loan for the Purchase of your New Home. Benefits of a VA Loan

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Mortgage and Lending with Van Dyk Mortgage NMLS:98535,Corp 3035

Conventional vs. VA Loan

See the unique advantages of a VA Loan

As a result of the many changes to the mortgage industry, the options for a conventional loan with $0 Down have disappeared and a VA LOAN is one of the only Zero Down home loans left.

 Not only can you save with a VA Loan by not having to have money for a down payment, you also save money by not having to pay monthly mortgage insurance required by other programs with less than a 20% down a payment.

In the past VA loans involved more red tape and hoops to be jumped through than other loans.  But the process has been streamlined and is no more difficult than other loan programs. This is why so many families are beginning to take advantage of their VA benefits and get a VA Home Loan instead of a conventional loan.

 

Down Payment - VA Offers $0 Down

In today's market, banks and mortgage lenders are generally asking for 10-20% down on non-government loans. Because a VA Loan is guaranteed by the federal government, banks and mortgage lenders do not require a down payment for veterans purchasing a home with a VA Loan.

Monthly Payment - Save Every Month with VA

Because the loan is guaranteed  by the federal government, banks and mortgage lenders do not require PMI (private mortgage insurance), an added monthly expense required for conventional  loans where the borrower finances more than 80% of the home's value, and on all FHA loans.

Qualification Standards - VA is More Lenient

The qualification standards for each loan type are very different. Once again, because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans making them easier to obtain.

Conventional loans require a higher credit score while VA lenders only require a minimum score of 640 to take advantage of your veteran’s benefits.  VA Loans also allow for a much higher DTI (Debt to Income Ratio).  Where conventional loans limit the DTI to 45% VA allows for to it to be as high as 55%.

Conventional loans recently went to risk based pricing.  What this means is that the best interest rates are reserved for those with credit scores of 740 or greater.  Anyone with scores below 740 will pay a higher rate, the lower your score, the higher your rate will be.

As you can see, unless you have great credit scores and are using a down payment greater than 20%, a VA loan has many great advantages over conventional loans.

 Give me a call today to see how much you can save on the purchase of your new home by using your VA benefit.

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Call Today to find out about best loan for your family.

Click the Link Below to Learn about our unique Pre Approval Process 


                 

 

                    

Specializing in Government Home Loans.  FHA, VA and  USDA Rural Development

 

Alabama: License # 52935

Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, Gadseden, Florence, Bessemer, Madison, Prichard, Phenix City, Homewood, Vestavia Hills

Georgia: License # 36362

Albany, Atlanta, Augusta, Alpharetta, Athens, Canton,  Columbus, Dalton, Dunwoody, Johns Creek, Macon, Marietta, Roswell, Sandy Springs, Savannah, Smyrna, Valdosta, Warner Robbins

Kentucky: License # MC305583

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Louisiana: License # 35486

Alexandria, Baton Rouge, Bossier City, Central, Denham Springs, Hammond, Houma, Kenner, Lafayette, Lake Charles, Livingston,  Marrero, Metaire, Monroe, New Iberia, New Roads New Orleans, Prairieville, Shreveport, Slidell, Walker

Tennessee:  License # 108470

Bartlett, Bristol, Chattanooga, Clarksville, Cleveland, Collierville, Columbia, Cookeville, Crossville, Fairfield Glade, Franklin, Germantown, Goodlesttsville, Hendersonville, Jackson, Jamestown, Johnson City, Karns, Kingsport, Knoxville, Memphis, Morristown, Murfreesboro, Nashville, Oakridge, Smyrna, Spring City

Texas

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We offer VA Loans,  FHA Loans, USDA Loans, and more across Alabama, Louisiana, Texas and Tennessee

 

Bill McDonald NMLS # 95835

VanDyk Mortgage NMLS # 3035

 

Bill McDonald-VanDyk Mortgage

705 Gate Ln Suite 202 104

Knoxville, TN 37909

(865) 686-8711

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