The Veterans Administration (VA) is especially set up to help with VA homeownership needs. Did you know the VA helps Service Members, Veterans, and eligible Surviving Spouses to become homeowners? As part of our mission to provide exceptional service to veterans, and in honor of Veteran’s Day, we’ve decided to review the five biggest benefits of VA home loans.
ONE: VA Home Loans Offer No Down Payment, No Mortgage Insurance
One of the biggest advantages to a VA home loan is that no down payment is necessary. Most mortgage programs, such as FHA and conventional loans, require at least 3.5% to 5% down. With a VA loan, you can obtain 100% financing. Also, with a VA loan you avoid costly mortgage insurance fees known as PMI – or private mortgage insurance.
Using a VA loan saves you money upfront and increases your buying power, which means you can do more for your family today. Do you need a bigger family room, a guest room, more curb appeal, or space for outdoor living? With a VA home loan, the home of your dreams may be closer than you think.
TWO: Lower Home Loan Rates
VA home loan rates are typically about 0.25% lower than those of conventional loans according to Ellie Mae*. Additionally, VA home loans have among the lowest foreclosure rates of any loan type, resulting in more affordable payments for those who qualify.
THREE: Benefits Beyond Homeownership
VA home loans are remarkably flexible. For example, you may use a VA home loan to refinance your existing mortgage, whether that mortgage is a VA loan or not.
Another benefit is the VA cash out loan. VA cash out loans are available to qualifying veterans, including both those that have a VA loan and non-VA loan. With a VA cash out loan, you can turn your home’s equity into cash for home renovation projects or even to pay down high-interest credit card debt. VA cash out loans are available up to 100 percent of your home’s value.
FOUR: Flexible Underwriting Requirements
If you experience financial challenges due to a medical emergency, job loss, or other unforeseen expenses, VA guidelines allow you to qualify for a loan without meeting a specific minimum credit score. With a VA home loan, even a bankruptcy or foreclosure does not automatically disqualify you.
FIVE: Reusable Benefits through VA Restoration
As a veteran, you can receive more than a one-time benefit. A previously-used entitlement may be “restored” to purchase another home with the VA if the property purchased with your prior VA loan has been sold and the loan paid in full.
At Freedom Mortgage, we believe our veterans are the lifeblood of our nation. Thank you for your service. You served for us; now, let us welcome you home.
You may be eligible to buy a home using a VA home loan, even if you served long ago. We can help you check your eligibility and find the answers you need to make decisions that work for you and your family. Call a Freedom Mortgage licensed Loan Advisor at 877-684-4210 for more information.
How can a VA loan work for you?