With a VA loan, you can get a mortgage with no down payment from private lenders, with the Department of Veterans Affairs (VA) that guarantees the loan. Borrowers who qualify for a VA loan may utilize it to acquire a home for their principal home or restructure an existing mortgage. VA Loans are intended to assist veterans, active-duty military personnel, and others in becoming homeowners at a fair price.
WHO CAN QUALIFY FOR A VA LOAN?
Loans from the Veterans Administration (VA) are granted to active and retired military personnel and their spouses. This type of loan is guaranteed by the federal government but given by private lenders. Lenders have slightly different minimum credit score requirements; thus, it is better to check with them first. The VA’s only credit criteria are that the borrower is deemed a decent credit risk by a lender before the loan can be approved. There are no differences in the perks of a VA loan regardless of which lender you want to work with.
BENEFITS OF VA LOANS:
- NO DOWNPAYMENT – To purchase a home, the majority of mortgage programs need you to pay at least a partial down payment. The VA loan is an exception. The Veterans Administration loan is a no-down-payment home mortgage alternative for qualified borrowers. However, it should be noted that no down payment is required unless the lender specifies otherwise or if the asset’s purchase price exceeds the predetermined property value.
- NO MORTGAGE INSURANCE REQUIRED – A VA loan does not require monthly mortgage insurance, unlike conventional loans. This means that borrowers can save as much as $345 per month, depending on the loan amount. Borrowers can save money and stretch their purchasing power because no mortgage insurance is required.
- FORECLOSURE AVOIDANCE – For more than a decade, VA loans have been among the safest types of mortgages available to borrowers in need of financial assistance. That’s rather astounding when you consider that there is no down payment needed. The Department of Veterans Affairs has also aided borrowers who are in danger of losing their homes and working to guarantee that they remain in their homes. The VA guarantee program is much more than just helping Veterans acquire their own homes. It is also concerned with assisting them in maintaining their properties.
- NO PREPAYMENT PENALTY – Because the VA loan does not have a prepayment penalty, borrowers can pay off their house loan whenever they want without incurring additional fees.
- LIFETIME BENEFIT – One of the most common assumptions regarding the VA mortgage program is that it is a one-time incentive. Borrowers who qualify for a VA loan can take advantage of this program as many times as possible, and the benefit is never forfeited. Contrary to popular belief, you are not required to pay off your VA loan in full before you can utilize your benefit again. It is even feasible to have even more than one VA loan simultaneously if you qualify for second-tier entitlement under certain circumstances.
Finding Your Lender
There are typically a lot of misconceptions when it comes to loans or mortgages. If you are planning to apply for a VA loan or other mortgage type, you may require the assistance of a skilled realtor to help you throughout the process. Our team of experts is well-trained and can offer exceptional services, particularly about VA loans. Please feel free to reach out to us today to learn more.
Advantages of VA Loans
- Excellent rates for qualified veterans
- No downpayment required
- Government guarantee with no insurance premiums needed
- Lower overall closing costs for the buyer