What Is A VA Loan?
The U.S. Government created the VA loan the help those brave men and women who serve our country purchase a home. VA Loans are a guaranteed by the U.S Department of Veteran Affairs. Meaning that the loan programs to work the the special situations that veterans have to find the best mortgage program for them with help from the funding the Veteran Affairs can offer. This program has many distinct advantages over traditional mortgages and has placed over 20 million veterans and their families into an affordable home.
The Benefits of Using a VA Loan
VA loans are long-term financing options for eligible American Veteran and their spouses.
There are many benefits of a VA tailored mortgage to help Veterans get the assistance they need to get into a home and a reasonable financial situation.
- %0 down
- VA loans don’t require a down payment unlike most loans that require down payments up to 20%
- No PMI
- Private Mortgage Insurance (PMI) is something that is required for buyers that are financing more than 80% of their home. However, if you are applying for a VA loan, the government backs these mortgages, and does not require a PMI for Veterans.
- Competitive Interest Rates
- The VA guaranty give lenders a degree of insurance and flexibility which allows them to lower rates for Veterans that may be lower than most other loans.
- Easy to qualify for
- The government funds this program making fewer qualifications for Veterans to have to worry about.
- Reduced Closing cost
- If you have a service related injury, you may qualify for waived funding fee, this will lower the closing cost of your home
- Right to Prepay without penalty
- Negotiable Interest rates
- Assumable mortgage
Do I Qualify for a VA Loan?
If you are a Veteran, an active duty personnel, in the National Guard, or a surviving spouse, then you may qualify for a VA loan. Veterans can apply with any mortgage lender that participates in the VA home loan program.
However they will need a certificate of eligibility for the loan. In some cases they can attain this from the lender. The eligibility requirements are a suitable credit score and a sufficient income to insure the borrower will remain on good standing with mortgage payments.
If you or your spouse may qualify for a VA loan check out your options and talk to a lender today. This program is setup to thank you for your service and help your find your dream home.