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Three More Reasons VA Home Loans are the Best Loans for Those Who QualifyFor many home buyers, the home purchase is a difficult process that comes with multiple expenses and hassles attached. It doesn't have to be this way for veterans. Thanks to the VA home loan, most veterans are able to purchase homes for themselves and their families easily and affordably. But reports have shown that many veterans and real estate professionals are actually entirely unaware of the VA home loan program. The fact that so many real estate agents pressure qualified veteran home buyers to pursue conventional financing is one of the primary reasons why it is so critical that the word gets out there. If you're a veteran of the US Armed Services and haven't been dishonorably discharged, you most likely qualify for full financing on a VA home loan. Check out the following three reasons why VA loans are the best loans for veterans who qualify. Lower interest rates. VA home loans tend to come at more favorable interest rates that conventional loans. There are several reasons for this, such as the fact that veterans tend to be proportionally better credit risks than non-veterans, but the primary reason is due to the fact that the Department of Veteran Affairs guarantees all VA loans that are made. This removes much of the burden of risk from lenders who offer these loans, and this allows lenders to provide some of the lowest mortgage rates available of any loan type out there. However, there is a catch to this. Because the VA guarantees all VA loans that are made, the VA has a vested interest in making sure that the property being purchased is actually worth what is being paid for it. For this reason, you can't use a VA loan to purchase a home or a piece of property that needs significant repair work done. The VA wants to ensure that the value is truly there before guaranteeing a loan against the property. Keep this in mind when you are looking for a piece of real estate to buy. No down payment. There is no down payment associated with the VA loan, making it one of the only zero-down, 100% financed loan options available outside of the subprime lending market, which, most borrowers are well aware, is now defunct. The goal of the VA home loan program is to allow veterans to become homeowners as swiftly and as easily as possible. This is why the down payment requirement is waived. If you're a veteran taking out a VA loan, you will have to pay a funding fee to the Department of Veteran Affairs. This funding fee is equivalent to 3.15% of the purchase price of the home. In other words, it can amount to a very small down payment and may be difficult for some veterans to cover. But don't worry. You can roll the cost of the funding fee into the total loan amount borrowed, thereby effectively financing all costs associated with the home purchase. Fast, easy refinance. The VA streamline refinance option is unique among all other refinance loans available. Essentially, qualifying veterans can refinance their home mortgage without having to requalify and go through the arduous steps in the loan process all over again. It's almost like simply reducing your interest rate and reaping the benefits. Contact a lender today to get started. |
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