VA loans (Veterans Affairs Home Mortgage Loan program) are a great way to utilize the VA’s benefits for eligible active duty military and Veterans. For some this is a great option when looking for your new home!
VA loans offers many benefits to active duty service members, veterans and some surviving spouses. You can utilize this program to purchase a home as well as refinance a home and even take cash out on the refinance.
While a conventional loan might seem like a great idea, keep in mind that VA loans are backed by the government and give lenders less risk with them and can possibility price the VA loans at a lower rate which saves you money every month!
Here are a few other program benefits:
The VA program won’t deny a loan based solely on a low credit score, and most rates are not tiered based on your credit score too. The VA program usually looks at only the previous 12 months of credit history, unless bankruptcy, foreclosure, a tax lien or a collections situation factors into your situation.
The VA home mortgage loan has low or no down payment required if your purchase price and eligibility you have gives the lender 25% coverage – otherwise there might be a minimal down payment required. This can save consumers up to 5-20 percent of the loan value when compared to a conventional loan.
Borrowers can often refinance to a lower rate within the VA program without re-qualifying for the program through the VA Streamline Refinance Loan.
If the borrower has a service-related disability, they may qualify for the lender to waive the funding fee, further reducing closing costs.
With interest rates at all-time lows, it makes sense to consider all of your options. It is a great idea to get pre-approved on your loan now and we can review all aspects and see which program meets your goals. Please call us today so we can start the process and help get the home of your dreams!