Five Reasons Why VA Home Loans Are the Best Loans For Veterans
8/18/2010
What makes a VA home loan better than any other home loan out there if you're a veteran? Several things. We'll discuss a few of them here.
1. The lowest mortgage rates. VA home loans offer the best mortgage rates as compared to conventional loans, especially when you take into account the fact that the qualification requirements for VA home loans are much lighter than for conventional mortgages. VA home loans are insured by the federal government, which pushes rates lower still, even for higher-risk applicants. Which leads to the next benefit of VA home loans.
2. Lower credit score allowances. When you're applying for a VA home loan, credit score is less of a determining factor than it is with conventional loans. This allows individuals with lower credit scores to receive excellent rates despite their credit history.
3. Zero down. No down payment is required for a VA home loan, if you meet all the qualifications. This is not the case with each and every VA loan, but for veterans who qualify, zero down is a very realistic option.
4. Insurance not required. Despite the fact that many VA home loans are zero-down loans, no mortgage insurance is required. This can lower a borrower's monthly expenses, as no excess money must be put toward insurance each month.
5. Lower closing costs. During the home buying process, the seller is allow to perform a seller concession of up to 4% of the total home value. This money can be used to cover the closing costs of the home purchase. In some cases, the seller concession is enough to cover the entire closing costs of the loan. This is a huge benefit for veteran homebuyers.
Let's recap. Lowest mortgage rates, lower credit score allowances, no down payment, no required insurance, and possibly zero closing costs. A VA home loan is definitely the best way for a veteran to purchase a home.
