What You Can Get Out of a VA Loan
With Veteran’s day just around the corner, we want to make sure you know the benefits and perks of what a VA loan can offer you! Benefits may vary upon qualification, but if you or someone you know who’s a veteran/service personnel is looking to purchase a new home, continue reading to learn more.
Veterans/service personnel who are eligible may receive the following advantages:
- NO DOWN PAYMENT. This is one of the biggest benefits of purchasing a home with a VA loan. Typically, home-buyers would have to pay from 3.5% - 5% of the home sales price depending on whether they use a conventional or FHA loan.
- No requirement of mortgage insurance. FHA loans charge an upfront and annual fee of mortgage insurance. Conventional loans will require you to pay for mortgage insurance if you do not put a down payment of at least 20%.
- Less in closing costs. Sellers may pay all of a VA buyer’s closing costs or up to 4% in concessions.
- Lower interest rates. On average, VA loans offer the lowest interest rates in comparison to conventional and FHA loans.
- No prepayment penalties. VA loans do not have a fee for those who decide to pay off their mortgage early.
- An assumable mortgage. If necessary, mortgage payment can be transferred to someone else in the event that the VA buyer can no longer pay for it.
- Foreclosure avoidance advocacy. VA staff members will do what it takes to restrain from foreclosing a VA buyer’s home by searching for alternative routes.
For more information, reach out to one of our loan officers today.
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Happy Veteran’s Day!