VA Loans: Helping Veterans Achieve the American Dream They Have Served to Protect
Created before the close of World War II, Veteran Affairs or VA Home Loans have given millions of veterans the opportunity to buy a home. If you or a loved one has served, read on to learn how this program and its benefits can help veterans in Hampton Roads buy a house of their own.
What is a VA Loan?
A VA Loan is a government-backed mortgage loan option available to Veterans, service members and surviving spouses. Va loans offer buyers competitive interest rates and terms, which can be used to purchase single-family homes, multifamily properties, condos, manufactured homes or new construction homes.
Benefits of VA Loans
No Money Down
This is by far the top benefit for veterans that draws them to VA Loans. Those that qualify can purchase up to a city’s loan limit without a down payment. This is subject to the current year limits and area.
For regular conventional and FHA Loans, a buyer could anticipate a 3.5-5% down payment. With a $300,000 loan, a buyer would be looking at a down payment between $10,500-$15,000. With the VA No Money Down option, service members are able to avoid this hefty down payment and save their money for other expenses.
No Private Mortgage Insurance
Typical home loans, like FHA and Conventional Loans, homeowners can expect to pay a mortgage insurance premium throughout the life of the loan. Some can avoid this additional fee by bringing a larger down payment - typically around 20% of the home purchase.
Other than the mandatory funding fee that goes to the Department of Veterans Affairs, another perk of a VA Loan is that there is no mortgage insurance!
Easier to Qualify
When qualifying for a VA Loan, most banks will want to see a 620 credit score or higher. FHA and Conventional Loans normally require much higher thresholds for pre-approval, especially if the borrower is looking to get the best interest rate. Visit Veterans United to learn more.
Looking for a local VA lender? We can get you in touch with our experienced preferred lender. Contact Us Today!
Source: Keeping Current Matters
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