A Guide to VA Home Loans
Whether you’re a military Veteran or in active duty, a Veterans Administration (VA) home loan can help you land a home you love and save you a ton of money in the process. But did you know that only about 6% of U.S military Veterans and active service members are actually taking advantage of this powerful, government-backed home loan? If you’re currently serving (or have served) in the military, it’s a great time to make the most of this money-saving resource and achieve your dreams of homeownership.
Here are some incredible benefits of a VA home loan that you may not have realized you have access to.
1. VA loans require zero down payment
While a majority of home loan programs require a down payment, the VA home loan is a notable exception. Provided you are eligible for this special loan, you have the opportunity to finance up to 100 percent of a home’s purchase price instead of paying up front.
2. VA loans are guaranteed by the government
Because the VA loan is backed by the government, they guarantee repayment to the lender in the event you cannot make monthly payments. As a result, lenders are encouraged to offer VA loans and help those who are or have served in our country’s military.
3. VA loans do not have set rates
VA home loans are not funded by the VA, and VA home loan rates are not set by the VA. U.S. banks and mortgage lenders set each of their own VA loan rates, so you can still do some cost comparison between lenders and find the right loan for you and your financial situation.
4. VA loans do not require you to pay for PMI
In general, mortgage lenders will require you to pay for mortgage insurance when you make a down payment of less than 20%. This is known as Private Mortgage Insurance (PMI) and serves to protect the lender in case a buyer can’t pay for their loan. VA loans, however, do not require you to pay for mortgage insurance, making the home buying process much more affordable for you.
5. The VA places a limit on lender closing costs
For many loans, closing costs may vary from lender to lender, but with a VA loan, lenders have a limit on what they can charge. This makes a VA home loan even more affordable, and you can use the money you saved on other things like moving costs or furnishing your new home.
6. There are a variety of VA loans available
If you are eligible for a VA loan, you can buy a house, condo or other various properties. A VA loan can also be used to refinance your current mortgage, or even allow you to make much-needed repairs to your home. Overall, VA loans offer you a wide range options, so make sure to contact a Loan Officer to help you decide which loan option is right for you.
7. Qualifying for a VA loan is easier than you think
When you apply for any mortgage, a lender generally looks for legal documentation, a positive credit history, and a way to ensure you can make your monthly payments. The U.S. Department of Veterans Affairs, however, makes guidelines for VA home loans more flexible to accommodate and reward those who are serving or have served in the military.
8. VA loan eligibility can be transferred to a surviving spouse
To help provide more security for your family, VA loan eligibility can be transferred to your surviving spouse. As long as the requirements are met, your spouse will be eligible for the same VA loan benefits that you are and can help them purchase a home with zero down payment, and save them on other home buying costs.
Wondering if you’re eligible for VA financing?
You are eligible for a VA home loan if you are an active servicemember, a Veteran or (as mentioned above) if you are the surviving spouse of a fallen Servicemember. Your eligibility does not expire and if you are a Veteran who has used their VA benefits before, you can continue using them indefinitely.
If you have served (or are serving) in the military, not only do you deserve respect for your hard work and dedication to our country, you deserve to find a place you can call your home. The home buying journey can be complex, but PrimeLending is here to make financing your next home a simple and hassle-free process. We’ll help you close quickly and confidently, and make sure you get the most from your VA loan benefits. For more information, reach out to a PrimeLending mortgage expert in your area today.
All loans subject to credit approval. Rates and fees subject to change. Mortgage financing provided by PrimeLending, a PlainsCapital Company an Equal Housing Lender. ©2019 PrimeLending, a PlainsCapital Company (NMLS: 13649).