Why veterans should take advantage of VA home loan benefit
The VA Home Loan program backed by the U.S. Department of Veterans Affairs is one of the most flexible mortgage options around.
Offering many advantages, VA home loans are available to eligible veterans, active-duty service members and select military spouses. I think of them as the best loan out there.
VA loans do not require down payments. This allows veterans to buy a home with less upfront funding. With other loans, buyers need a down payment of 3% to 20% of the purchase price.
No private mortgage insurance is required, potentially saving hundreds of dollars per month.
Interest rates on government loans are normally lower than conventional loans. This keeps monthly payments more affordable.
Credit guidelines for VA home loans are much more flexible than other types of loans.
The U.S. Department of Veterans Affairs limits the types and amount of fees charged to veterans. Also, sellers and lenders can cover many of the fees. This in turn reduces the amount of funds needed for closing.
VA home loans can be paid off early without incurring a pre-payment penalty. This allows freedom to refinance, sell or pay down a loan more quickly without extra cost.
Once a VA home loan is paid off, the entitlement can be restored and used again.
Veterans are not subject to county loan limits. They can borrow as much as a lender will approve. No required down payment still applies with higher loan amounts.
The VA home loans are a well-deserved benefit that can make a huge difference in building wealth through homeownership.