Millions of veterans have access to what is called the "VA Home Loan" program, a loan program that has a great many benefits for those that have served in our armed forces. Many veterans have already used their loan benefits and there are a lot of advantages that one can claim from those loans.
If you're a veteran looking for a new mortgage to finance a home purchase, you should keep the advantages of the VA Home Loan in mind.
First of all, in most cases, there is no down payment required for a VA Home Loan. Generally, lending institutions require a 5% down payment, with some special circumstances increasing or decreasing that amount. That means that a VA Loan provides better benefits up front than traditional loans, as they have smaller upfront costs. When dealing with homes that cost $100,000+, that can save a lot of money.
Another benefit is that there are no monthly mortgage insurance premiums. That means VA mortgage rates are better than the alternatives. Conventional buyers or loan seekers typically need to get mortgage insurance unless there is a down payment of 20% or more, which is a massive number to pay upfront.
VA mortgage rates are not only better, they also have lower interest rates on average compared to other loan types. They are the lowest of all loan types, in terms of interest rates.
The final benefit is that there is a foreclosure avoidance advocacy from the VA loan program. A group of people assigned by the VA who advocate on your behalf to avoid, and find alternatives, to foreclosure. This is more protection for you, the buyer, and helps alleviate some fears that failed repayment could lead to a home loss.
However, all buyers must keep in mind that the VA does not act as an inspection of your property. They cannot guarantee the home in question will be free of defects, and will not act as an appraiser of the property. If you have questions about the home, talk to an expert before seeking loan assistance, or committing to a purchase agreement.
If you have any questions about VA loans, their benefits or how to go about getting one, be sure to contact us. We'll be happy to help.