5 Benefits of Veteran Mortgage Loans
Owning a home can be a costly venture. For most people, making a down payment for a house out of pocket can be financially challenging. That is where mortgages swoop in to save the day.
Veterans, service people, or surviving spouses benefit from being eligible for a veteran mortgage loan. Veteran mortgage loans were introduced before World War II to help veterans acquire their dream homes at an affordable rate.
If you have served time for your country, it is time to jump on a veteran mortgage loan to secure a home for yourself and your family. Here's a look at five benefits from a veteran mortgage loan.
1. No Down Payment
This is by far the most significant benefit that stands out with VA home loans. Most mortgages require a down payment of a certain amount before buying a house. As an eligible veteran, you don't have to spend years saving up to make a down payment.
Always being on the move may render it a bit hard to save money as a serviceman; that is why veteran mortgage companies offer veterans the choice of fully financing a home without paying a cent.
2. No Need for Private Mortgage Insurance
For conventional mortgage lenders, making a down payment of less than 20% requires you to pay for mortgage insurance. With a veteran mortgage loan, you are not required to pay for insurance. However, a mandatory fee is included that goes to the Veteran Affairs department. If you have a service-related disability, then you can be exempt from this fee.
3. Relaxed Credit Requirements
Your credit history will still dictate your eligibility and the amount of loan you receive for VA loans. However, the benchmarks are significantly lower compared to other types of loans.
The Veteran Affairs Department is not directly linked in the disbursement of loans; however, they oversee the program and directly influence credit terms.
4. Easy Eligibility
Applying for a loan requires an individual to meet specific criteria with the proper documents and credit history. However, with VA loans, the guidelines tend to be more flexible due to the VA loan guaranty.
5. Competitive Interest Rates
VA loans offer unbeatable interest rates compared to their counterparts. In fact, VA loans have held a low average 30-year fixed rate on the market. With lower rates, you can save money throughout your loan.
As you have served time for your country, let your country serve you as well by helping you get the home of your dreams. With affordable housing, you can quickly secure your and your family's future.
Contact a veteran mortgage lending company to learn more.
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