What are the Benefits of a VA Home Loan?

Published on October 6th, 2016

If you are a veteran or are currently in active duty, you know what it means to serve our country and protect our freedoms. You’ve had our back through your service, now we want to have yours. Your dream of home ownership can be made a reality through the benefits of the VA Home Loan.

This loan is specific to veterans and active duty members, and our vLoan team can help you find if you’re qualified for this loan and its benefits:

No Down Payment

Many home loan programs require you to make a down payment when purchasing a home. Saving money and building credit can be difficult for service members who are constantly on the move. The VA loan is different. In most cases, qualified buyers can use a VA loan to purchase with no down payment.

No Private Mortgage Insurance

Private mortgage insurance (PMI) is insurance that protects the lender in a case of a borrower default. Many conventional lenders will require you to pay private mortgage insurance unless you’re able to put down at least 20 percent. Fortunately with a VA loan, there is no PMI because the Department of Veterans Affairs backs all VA loans and assumes the risk on behalf of the borrower.

VA Loans Have a Government Guarantee

VA loans come with favorable terms for a reason. This is because the federal government guarantees a portion of your loan will be repaid to the lender if you default on your home.

VA Loans Have Limits on Various Charges

Enjoy limits on various charges lenders may charge. This is another way VA loans are more affordable than other traditional loans. Spend your money saved on home improvements or new furniture!

No Pre-Payment Penalty

The VA Loan allows you to pay off your home loan at any point without having to worry about a pre-payment penalty. With the absence of a pre-payment penalty, you are free to consider future home purchases and refinancing options.

 

Our vLoan team hopes you better understand the benefits of VA loans. Please contact us if you have any additional questions about VA loans or the mortgage process! We’re the leaders giving you a second opinion.

 

Source: http://themortgagereports.com/13222/10-biggest-benefits-of-a-va-home-loan

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