How VA Mortgage Loan is a Great Home Financing Option For Veterans
VA Mortgage Loan is the best opportunity for veterans, active military persons and their spouses to get home financing to purchase their dream home. It is a great financing option with unique money-saving benefits that lack in most of the other loan options.
Some key benefits of VA home loans for military veterans are:
There is no need of down payment in this program unless purchasing price is above the value of a property.
No need for monthly mortgage insurance premiums.
Most of the lenders require low credit scores set by the VA.
Low-interest rates in comparison to other home loan options.
There are no penalties in case a mortgage is paid off early that allow capable homebuyers to pay off their mortgage quickly.
No need to pay origination or lender fees.
A limited amount is charged from you for closing costs
A seller may pay closing costs.
VA is ready to provide you assistance in case you find difficulty making payments.
You can reuse the benefit without concerning about first-time home buyer.
This loan is assumable as long as a person assuming the loan qualifies.
Like other mortgage home loan programs, an aspirant of VA loan must fulfill some basic requirements or eligibility criteria.
A borrower must have served- 90 consecutive days of service during wartime or one hundred eighty-one days of services during peacetime or spent over six years of service in the National Guard or Reserves. Apart from these, the spouse, of a service member who died during the service time or as a consequence of a service-related disability, can also take advantage of this loan program.
No down payment
A unique feature of VA loan is the facility of purchasing a home without any down payment. A mortgage market changes on a daily basis and banks also require large down payments for conventional loans. This makes most of the borrower fail to get a home loan.
On the other hand. VA department well understands the military persons have benefitted the country for many years, and after returning from their services, they would face problems saving money for a down payment to purchase a home. Thus, to help them, the VA designed this programme through which military persons can fulfill their dream of having their own home without any down payment (except the cases when the purchasing value is greater than a reasonable value of a property).
Through a VA streamline, you can save a good amount of money. This is because there would be no income verification and appraisal required. You would have a low-interest rate with 0.5% funding fee. There would be no out-of-pocket costs also.
Minimum risks to the lenders
VA loan is backed by the government. This means the government will bear the cost of money and will provide the fund to the lender in case a borrower fails to repay the loan amount. This allows banks to assume fewer risks as well as set less stringent qualification standards for VA loans and make them easy to obtain.
Low monthly payment
Unlike other home loans, there is no need for private mortgage insurance or PMI in VA loan. In addition to this, there is also an interest rate lower than a conventional loan. These combine aspects enable you saving a huge amount of money. Then, the amount of your monthly payment gets reduced.
As military persons and veterans need not make a down payment and their monthly amount of payment including less interest rate is also low, they can repay the home loan easily. In addition to these, there is no risk to lender and borrower in case a borrower fails to repay the loan as a lender is backed by the federal government. All these facilities, provided by the government, makes the VA loan a good home financing option for veterans. If you still have queries or doubts regarding VA, you can also take the help of VA home loan specialists in Colorado who have long years of experience in this field and can provide you all guidance from starting to end making your dream of getting your own home true.