A VA Loan is one of the strongest mortgage options for veterans, active military, and surviving spouses.
The strength of the VA Loan comes from the specific financial benefits this type of loan provides compared to other mortgage loan options. These benefits are the reason why VA loan volume has grown exponentially over the last decade.
What are the top 5 benefits of a VA Loan? Let’s dive in.
No Down Payment Required
Qualified veterans can purchase a home without a down payment. This is a huge advantage when purchasing a home, any extra cash in your pocket helps!
Competitive Interest Rates
VA interest rates are lower than conventional interest rates, usually around 0.5 to 1 percent lower. Lower interest rates pay off by saving money each month over the term of the loan.
We’re here to be your partner in your homeownership journey and saving money is part of that partnership. The VA Loan program saves veterans money with the lowest average fixed rates on the market.
No Private Mortgage Insurance (PMI) Required
Other conventional loan types require down payments and can include the extra cost of mortgage insurance. This is an additional monthly payment occurring until the buyer has earned 20% equity in their home. Unlike FHA and conventional loans, VA loans do not require this additional monthly mortgage insurance cost. This is another great way the VA loan helps save veterans and active military members money. By not requiring a PMI, a veteran can save a huge sum of money over the lifetime of their loan. No PMI gives veterans the ability to harness their buying power and continue to save by utilizing the full capacity of their benefits.
Reasonable Credit Qualifications
The VA doesn’t set a minimum credit score for VA loans, your lender will be your guide. Your income to debt ratio helps your lender partner with you, clearing the path to homeownership by repaying your mortgage. Credit scores can vary, but the minimum cutoffs are usually lower for VA loans than conventional mortgage loans. Veterans don’t need perfect credit to secure financing for a home, even in a competitive interest rate market.
Limits to Closing Costs
Closing costs are the various and sometimes numerous fees a buyer pays to obtain a mortgage. The Department of Veterans Affairs limits the number of costs paid by a veteran or active military buyer. A qualified VA buyer can even ask the seller to pay their loan-specific closing costs, covering expenses like prepaid taxes and insurance fees. There’s no guarantee a seller will agree to this request, but with this knowledge, we encourage you to ask during the negotiation process!
VA home loans are one of the most rewarding benefits available to veterans, active military, and their families.
Our team combines today’s technology with the personal guidance needed during the mortgage process, allowing for a smooth transaction and on-time closing.
Are you a member of the military community? If so, you’ve earned these VA loan benefits, and the GoVA team is committed to being your partner in the path to homeownership. You served for us, let us work for you.