Are VA Loans a Good Option? The answer is simple, YES. VA Home Loans are one of the best mortgage options available.
For those unfamiliar, the VA Home Loan Program is a mortgage guaranteed by the Department of Veterans Affairs. Qualifying Veterans, active-duty personnel, Reserve members, National Guard members, and some surviving spouses can purchase a home using their VA Entitlement. You can check out the VA Requirements HERE and see if you are eligible.
If you have VA Entitlement, here are 5 major reasons you should be considering a VA Home Loan.
1. No Down Payment Requirement.
Using a VA Home Loan, a Home Buyer can purchase a property up to the county limits with no down payment requirement. That means if you are purchasing a home in Colorado, you can purchase up to $453,100 (some areas up to $679,650) with zero down payment. I
What if you are looking to purchase over the limit? That is fine, you will need to make a down payment of 25% of the difference of your purchase price and the county limit.
2. No PMI.
Another great benefit of the VA Home Loan is there is no PMI required. When getting a mortgage with less than 20% down payment, most loans have Private Mortgage Insurance. This is to protect in case of default. With a VA Home Loan, you can borrower up to 100% the value of the home and are not required to pay PMI. Which can save $10,000’s over the life of the loan.
3. Interest Rates.
VA Home Loans offer very competitive interest rates.
4. Closing Costs.
The Department of Veteran Affairs limits what a borrower can be charged for closing costs. In addition, the VA allows for a large portion of closing costs and other items to be paid directly by the seller. This can result in VA Borrower’s paying nothing out of pocket to purchase their home.
5. Finance in your VA Funding Fee.
VA loans require a funding fee for eligible veterans to use the program. However, this fee can be financed into your loan amount keeping more cash in your pocket.
If you are Eligible for a VA Home Loan it makes a ton of sense to use your benefit on your next home purchase (or refinance). Hopefully this gives you a better understanding of the VA Home Loan Benefits.
As always, reach out to a trustworthy lender to see if you meet the loan guidelines or to apply for a VA Home Loan.
Leave your information below if you’d like to request more information about that VA Home Loan Program from one of our Local Home Loan Experts: