What are the Benefits of a VA Loan?
VA Loans are hitting record levels among the military community. The many enticing benefits of the VA Loan program make it one of the best options for veterans and active-duty service members looking to buy a home. If you are a Veteran, you can’t afford to miss out on the 4 benefits this mortgage option offers you!
Little to No Down Payment Required
The days of no down payments mortgages are long gone, but not for veterans! The defining advantage of the VA Loan program is that no down payment is required for eligible veterans. While almost every other loan options require some form of down payment, the VA Loan allows you to purchase your home with zero down and up to 100% financing available.
Closing Cost Limits
Like all other mortgages, VA loans have closing costs. But, the benefit is that the VA strictly limits closing costs for veterans. Only fees associated with the loan are allowable including loan origination fee, appraisal fees and VA funding fee. If there are any other fees not associated with the loan, they cannot be paid by the borrower and will be covered by a lender credit.
If no down payment and limited closing costs are not enough to entice you, the other requirements for a VA loans are also flexible. The minimum credit score for a VA Loan is 620. That is 100 points lower than other loan options. Requirements for how soon a veteran can purchase after bankruptcy or foreclosure and terms of refinancing are also more flexible than with other loan types. These are big benefits for veterans!
No Monthly Mortgage Insurance
Since a VA Loan is a government-backed loan, it does not require private mortgage insurance. Private mortgage insurance for other loan types is a monthly fee based on loan amount and credit score. With a VA Loan, there is no monthly mortgage insurance so more of your mortgage payment goes towards your loan amount and you save on the overall cost of your mortgage.
The many benefits of the VA Loan program make it the best option for veterans. Military members can purchase a home with no down payment and flexible requirements without spending on additional monthly mortgage insurance or high closing costs! We are proud to be an approved VA lender and even prouder to serve the men and women who have served our country! It’s our simple way of saying ‘thank you’ for your service! Find more information on VA Loans here: