The VA Home Loan is the preferred home loan choice for veterans and active duty military families. The VA Home Loan Program offers less restrictive guidelines and more underwriting flexibility than other types of loan products making it easier to qualify using your veteran benefits.
One of the biggest obstacles for homebuyers is saving enough money for a down payment. The burden can be especially difficult for active duty service members who are moving from base to base. Since there is no down payment required for a VA Home Loan, many veterans can purchase a home with little to no money out of pocket.
Since the VA guarantees the lender the top 25 percent of the loan, no mortgage insurance is required. Most conventional loans require a borrower to put down at least 20 percent of the purchase price or pay mortgage insurance. Mortgage insurance can be costly and does not ever go towards reducing your principal balance. The VA home loan allows borrowers to have a lower effective interest rate and build equity more quickly than other loans with mortgage insurance.
There are never any prepayment penalties for a VA Home Loan. What a great VA Loan Benefit! This means that you are free to refinance and take advantage of a lower rate or get cash out without having to pay a penalty to do so. If you are active duty military and frequently move, not having to pay a penalty makes your home that much easier to sell.
Because the Department of Veteran Affairs guarantees each loan, interest rates are typically 0.25 to 1 percent lower than those of conventional loans. Additionally, without mortgage insurance, the effective interest rate savings is tremendous.
If negotiated, the VA Loan Benefits allows the seller of a property to pay up to four percent of the purchase price towards the veterans closing costs and prepaid items. Negotiating the terms of the contract to maximize your VA home loan benefit should always be done by a qualified real estate professional, such as Security American Realty. If done properly, most veterans can close on their home with little or no money out of pocket.
Get Started Today to learn more about your veteran benefits!
Our team here at Security America are experts when it comes helping educate the US Military on their VA Loan Benefits. If you’re ready to get started today contact us at 1-855-468-2669 or complete the simple form above and one of our mortgage specialists will contact you shortly. We look forward to working with you!
Check out v-a.us to learn more about your veteran benefits. Also check out http://benefits.va.gov/warms/pam26_7.asp