VA Loan Mortgage

What You Can Get Out of a VA Loan

With Veteran’s day just around the corner, we want to make sure you know the benefits and perks of what a VA loan can offer you! Benefits may vary upon qualification, but if you or someone you know who’s a veteran/service personnel is looking to purchase a new home, continue reading to learn more. 

Veterans/service personnel who are eligible may receive the following advantages: 

  1. NO DOWN PAYMENT. This is one of the biggest benefits of purchasing a home with a VA loan. Typically, home-buyers would have to pay from 3.5% – 5% of the home sales price depending on whether they use a conventional or FHA loan. 
  2. No requirement of mortgage insurance. FHA loans charge an upfront and annual fee of mortgage insurance. Conventional loans will require you to pay for mortgage insurance if you do not put a down payment of at least 20%. 
  3. Less in closing costs. Sellers may pay all of a VA buyer’s closing costs or up to 4% in concessions. 
  4. Lower interest rates. On average, VA loans offer the lowest interest rates in comparison to conventional and FHA loans. 
  5. No prepayment penalties. VA loans do not have a fee for those who decide to pay off their mortgage early. 
  6. An assumable mortgage. If necessary, mortgage payment can be transferred to someone else in the event that the VA buyer can no longer pay for it. 
  7. Foreclosure avoidance advocacy. VA staff members will do what it takes to restrain from foreclosing a VA buyer’s home by searching for alternative routes. 

For more information, reach out to one of our loan officers today.

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Happy Veteran’s Day!

 

 By Hannah Nguyen  

Sources:
www.valoans.com