Top 10 VA Mortgage Benefits
Have a question about VA loan benefits call 855-971-1050 to speak with a loan officer.
There are many VA loan benefits, here is a list of the top 10 VA loan benefits. VA loans offer some great advantages for borrowers including no down payment requirements and 100% financing. Learn more about VA loans below!
By JEFF NEWTON
Senior Mortgage Banker | NMLS #: 168216
ZERO Money Down on a VA loan
Va loans require no down payment and have 100% financing. VA loans are a great way to buy your dream home with little or no money down, VA loans offer an incredible opportunity to purchase homes across America at all price ranges and property types-including condominiums, town homes, single family residences and even some vacant land projects. Specifically designed for military veterans who meet certain eligibility requirements by the Department of Veteran Affairs (VA), VA loans give qualified borrowers access to low interest rates that can be as much as 0.50 percentage points lower than conventional mortgage rates.
No Mortgage Insurance Requirements
VA loans have no mortgage insurance requirements, which means VA loans are the most affordable type of home loan available. Veterans can qualify for VA loans with credit scores as low as 580-even without a down payment! VA Loan Requirements: VA Loans have some unique requirements that you must meet in order to be eligible. These include military service and having an honorable discharge; waiting at least 90 days after leaving active duty before applying for a VA loan or refinancing your current VA mortgage; meeting income eligibility guidelines set by Department of Veteran Affairs (VA). You may also need qualified guarantors who do not require VA LOANS but will co-sign on behalf of the veteran applicant; provide proof of annual earnings within acceptable limits set by VA Office (this is usually done through pay stub
VA loans are Backed by the VA
VA loans are backed by the U.S. Department of Veteran Affairs. This protects VA lenders and guarantor against loss. This means VA loans are offered with no money down and typically lower interest rates for qualified veteran borrowers. The VA guarantees a portion of the loan amount in case the borrower defaults on their mortgage payments. In short the VA does not lend the money but they back up the loan which makes the VA loan one of the best mortgage products on the market.
VA Loan Mortgage Options
There are many options for VA loans, you can use your VA benefits to purchase a home or VA approved condo or build a home with the VA one time close loan. Depending on your situation there is probably a VA loan option for you. If you have a question about the VA loan options call 855-956-4040 to talk with a VA loan specialist.
No Prepayment Penalties
With most VA loans there is no prepayment penalty for selling the property or paying off your VA loan early.If you sell the VA property or pay off your VA loan before it is due, then any cash in hand will go to the VA lender and not be subject to a prepayment penalty.
VA Loans Have Easier Qualifications
The VA loan is generally easier to qualify for than a conventional loan with private lenders. VA loans are assumable and allow for more leniency when qualifying for the VA home mortgage program. Again the VA loan is a great mortgage product with lenient credit guidelines no money down and lower interest rates than most other types of mortgages.
Lower Closing Costs
VA loan closing costs are lower as well. There are restrictions on what lenders can charge. The VA has regulations on what the lender can and can’t charge. VA loan closing costs are another great benefit.
Funding Fee Flexibility
The VA does require a VA funding fee but the fee can be financed into the VA loan. This VA funding fee can be calculated as a percentage of the VA home mortgage or it could be charged on a per-dollar basis, whichever is greater. That being said if you are a disabled veteran you may be exempt from paying the VA funding fee. Call 855-956-4040 to learn more
VA Assumable Mortgages
VA loans may be assumable in most situations. Your home loan may be assumable if you want to sell your VA home and the VA buyer wants to take over this VA loan obligation.
Shop the best VA Rates & Lenders
Since VA loans are not funded by the VA but rather backed by them you are able to shop for the best VA loan rates from VA lenders. Giving veterans the option to Shop competitive VA loan terms is a benefit to the veteran.