With millions of veterans and service members across the U.S., VA home loans are one of the most popular home loans for borrowers. Around 1944, VA loans were created by the U.S. Department of Veteran Affairs (VA). The goal of VA loans is to assist veterans and active-duty military personnel and help them achieve homeownership. With tons of benefits for those who qualify, this may be the perfect borrowing option for you.
Those who are eligible to receive a VA loan are the following: veterans, active-duty service members, current or former National Guard or Reserve members, Discharged members of the National Guard, and surviving spouses. Below are some of the top benefits that VA loans offer.
No Down Payment. While the majority of home loan options require potential homebuyers to make some sort of down payment, VA loans are an exception. When it comes to VA loans, qualified homebuyers can take advantage of not having to put down any upfront cash. VA loans give you the opportunity to finance a home up to 100 percent.
No Mortgage Insurance Cost. Mortgage insurance was created with the intent to help protect lenders in case their borrower defaults on their loan. In most cases, lenders require that their clients pay for mortgage insurance, especially if their down payment is less than 20 percent.
Qualifying can be Easier. Typically, in comparison to other loans, VA loans have guidelines that tend to be more flexible, making them easier to qualify for. While they still require specific documents, income, and appropriate credit history,
Competitive Interest Rates. As it’s not uncommon to see them fluctuate, VA loans may offer lower interest rates in comparison to other loan options. It’s important to note that different lenders offer different rates so it’s always good to do your homework.
Curbing Closing Costs. If you’re able to obtain a VA home loan, as a homebuyer, you can ask sellers to pay for all of your loan-related closing costs. This is a strategy that helps make VA loans more affordable and it can help you as a homebuyer, save more money and cover other things such as, moving costs and home improvements.
For those who qualify, VA loans are an excellent solution to helping you achieve homeownership. Although the benefits listed above are great, it’s important to note that there are more benefits that VA loans have to offer. That being said, if you have any additional questions about VA loans, feel free to reach out and connect with one of our loan officers today!