Significant Benefits of a VA Mortgage
No Down Payment
With a VA loan, you can buy without a down payment. The option of not having a downpayment opens up home buying for many people who would not otherwise be able to buy.The ability to purchase with no down payment means military homebuyers don't have to scrape and stockpile for years and years to pursue a home of their own.
- Eligible homebuyers are not required to have a down payment in most cases - typically cited as the greatest VA loan benefit.
No Private Mortgage Insurance
There is no monthly mortgage insurance with VA loans. When you buy a home with a VA loan, you get to skip the PMI requirement altogether, you will not need to spend years paying hundreds of extra dollars every money for private mortgage insurance.
- No monthly mortgage insurance premiums or PMI to pay!
NOTE: VA loans do come with a mandatory funding fee that goes directly to the Department of Veterans Affairs. This fee is typically added into the loan which has a minimal inpact on the monthly payment. Borrowers with a service-connected disability are exempt from paying this fee, the fee helps keep the program going for future generations.
Sellers Can Pay Closing Costs
Homebuyers can ask sellers to pay all of their loan-related closing costs and up to 4 percent of the purchase price for things like prepaid taxes and insurance, collections and judgments.The VA actually limits what fees and costs veterans can pay at the time of closing.
- Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.
Relaxed Credit Requirements
One of the most significant benefits of going with a VA Loan is the more relaxed financial qualifications.Credit score requirements are lower than conventional mortgages which makes it significantly easier for many military buyers to qualify for a VA Loan.
- Lower required credit scores than conventional mortgages.
Lower Interest Rates
- Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types
BAH (basic allowance housing) Can Count as Income
BAH can count as income! If you’re a qualified active duty member lenders can count your BAH as income. This allows active duty members to qualify for higher loan amounts plus pay the monthly mortgage costs
- BAH can help you qualify for a VA loan and give you more buying power!
No Prepay Penalty
If want to pay off your VA Loan for any Reason at any time there is no pre-payment penalty!
- VA Loans do not have a pre-pay penalty , you can pay off your VA Loan at any time withou having to pay any type of early payoff penalty
You Can Use Your Benefit for future home purchases
You can use your benefit to purchase again in the furture
- Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.
VA loans are a unique benefit for qualified veterans, military members, and their families.
If you are interested in taking advantage of the benefits associated with a VA loan, contact me today 904-712-1500 or to get a rate quote now.
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