Loans for Veterans
The VA Loan is arguably the best loan product out there for Veterans. Now, while I do a lot of VA loans I still get tons of questions about them. If you or someone you know served in the military, active or reserves, read more to find out exactly how easy it can be for Veterans and Active military to get a home.
What is a VA Loan?
A VA Loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs issued by qualified lenders. The loan was designed to offer long-term financing to American veterans and active military or their surviving spouses.
What are the Benefits?
The VA loan is flexible and comes with great benefits that allow veterans and their families, some of who may have a tough time, receive financing. The VA loan requires no down payment, no private mortgage insurance, and offers some of the best interest rates available.
No Down Payment
With a VA loan, veterans and active service members can receive financing up to 100% of the home’s value without putting any money down. This 100% financing extends up to the county loan limit, which in most areas of the country is $424,100. If you’re looking for a larger amount you would want to look at a VA Jumbo loan. This allows you to borrow more and pay a fraction of the down payment you would for a Conventional loan.
No Private Mortgage Insurance
The down payment requirements for an FHA loan and Conventional loan are 3.5% and 5%, respectively. However, if you were to use those minimum down payments you would be required to carry private mortgage insurance(PMI). Carrying this PMI can cost you thousands of dollars each year it is required. With a VA loan no PMI is required because the loan is guaranteed by the government. This allows you to put more equity into your home each year.
Better Interest Rates
With the government backing each VA loan lenders can offer lower interest rates on them. These rates can be as much as .5-1% lower than conventional rates.
With all of these savings it’s no wonder the VA loan is considered the best loan out there for those that are eligible. If you are wondering about your eligibility for VA loan and want to see how much you can qualify for give me a call or shoot me a text at (314) 472-DOUG (3684).
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