Benefits of a VA Loan – Top 5 Benefits. Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost.
Here’s an overview of the top 5 benefits of a VA home loan.
Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception. With a VA loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity.
Typically, lenders require you to pay for mortgage insurance if you make a down payment that’s less than 20 percent. VA loans require neither a down payment nor mortgage insurance. That makes this a VA-backed mortgage very affordable upfront and over time.
A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties. Or, it can be used to refinance your existing mortgage.
Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guarantee.
The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else.
If you’re a military veteran or still active duty, you may qualify for a U.S Department of Veterans Affairs (VA) loan.
If you would like a referral to one of our VA lenders to see if you qualify for a VA Loan, please reach out to us by email at [email protected] Thank you for your service to our country, now let us serve YOU!
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