Benefits Of A VA Home Loan
Take Advantage Of Your Benefits
New Home Purchase
The VA has been helping veterans buy homes less expensively since 1944, offering the following tremendous benefits:
0% down payment: Many people think they can’t buy a home unless they’ve saved tens of thousands for a down payment. While this may be true for most people, it is not true for qualified veterans. Vets can access this program to buy a home with 0% down. With rates as low as they are now, you’ll likely be surprised at how much house you can afford when buying vs. renting.
Reduced payments and lower interest: The federal government guarantees VA mortgages, allowing approved lenders to offer lower rates. In fact, between rates that average a little under half a point less, and the fact that vets do not have to pay private mortgage insurance, VA loan payments on a $250k mortgage average about $3,100 less than a conventional loan.
Prequalification: Getting prequalified is the best way to start testing the home buying market. It costs nothing to do it, but lets you know exactly how much house and what benefits you actually qualify for. Plus, touring homes with a prequal letter from a VA lender in your pocket will make sellers sit up and take you more seriously as a potential buyer.
VA Refinance Loan
A VA refinance loan is backed by the United States federal government. You should not have to come up with any money, as long as the loan is below $417,000.
If you borrow more than that, you will have to pay 25% of the difference between $417,000 and the sales price.
You will also be able to take advantage of more flexible approval terms. Since the federal government is backing the loan, lenders offer a different set of approval guidelines. This opens the door for many that would not be able to be approved on their own.
A VA refinance loan also comes with no prepayment penalties and limits on closing costs.
Therefore, if you qualify for a VA refinance loan is your best option.
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