8 VA Loan Benefits

By Max McCoy Mortgage, Refinance Comments Off

VA Loans

VA Loans are created to help active-duty military personal and veterans become homeowners an affordable rate. A VA loan has flexible qualification guidelines, requires no down payment, and requires no mortgage insurance.
VA mortgage rates can be better than those of conventional home loans, and pose many perks for those they serve. Here are 8 of our favorite benefits of a VA home loan:

1. VA Loan Requires No Down Payment

While most home loans require some form of down payment to purchase a home, VA home loans do not.
A VA loan is a unique no-money-down opportunity. With a VA loan, you can finance up to 100 percent of the purchase price without paying 5-20 percent of it upfront in cash. Not a bad deal.

2. VA Loan Requires No Mortgage Insurance

Lenders usually require mortgage insurance unless a minimum 20 percent down payment has been payed. This insurance essentially is collateral for the lender, protecting themselves in the event that you default on your loan.
VA loans, however, do not require mortgage insurance. A VA-backed mortgage proves extremely valuable, eliminating the need for a down payment and mortgage insurance. Again, not a bad deal.

3. VA Loans Have Government Guarantee

If you’re unable to make monthly payments, the federal government still ensures that most of the loan will be repaid of to the lender.
This government guarantee is what allows lenders to offer VA loans with great terms that attracts borrowers to want them.

4. No Prepayment Penalty for VA Loans

If you decide you no longer want to own your home, a VA loan won’t stop you from selling it. No matter when you decide to sell off your home, you won’t be penalized.
You also have free reign when refinancing your VA loan. You can refinance your existing VA loan into another VA loan or a non-VA loan at any time.

5. You Can Compare VA Loans

VA loans are offered by US banks, savings-and-loans institutions, credit unions and mortgage lenders, and NOT the VA itself. This gives you the option to find a variety of VA loan rates and fees that work best for you.
Shop around and compare which VA loan works for your budget, there’s options.

6. VA Loans Come in Many Shapes & Sizes

A VA loan can be used to buy a house, condo, duplex, and many other types of properties.

A VA loan can have a fixed rate or an adjustable rate. It can be used to refinance your existing mortgage, or to make major repairs on your home.
You can even let the nation’s top VA-approved lenders compete to give you the best deal.
In short, there are an abundance of choices at hand.
Click to find top VA lenders competing for your best rate

7. Flexible Qualification For VA Loans

Compared to other mortgage types, it’s easy to qualify for VA loans. Though all loans require documentation, credit history and sufficient income, VA loan guidelines can be pretty flexible.
Because of the VA loan guaranty, it’s made easy for you to buy a home or refinance. The Department of Veterans Affairs wants the best for you!

8. Va Loans Have Low Closing Costs

The VA limits the closing costs lenders can charge to VA loan applicants. VA loans again prove how much more affordable they can be than other types of loans.