Use VA Benefits to own a home
When you take a look at mortgage options available to buy a new home, you will figure out that VA loans are a powerful option out there to consider. This is an exclusive mortgage option available for active military personnel, veterans, and surviving spouses. If you are eligible, you should take a look at the benefits of VA loans and decide whether to buy a home with it or not. To make your life easy, we will list down the prominent benefits that come along with VA loans below.
- You don’t need to make a down payment
One of the biggest benefits that you can get out of a VA loans is that you don’t need to worry about making a down payment. Hence, you can make sure that you don’t have to save money for years in order to buy a house. When it comes to FHA loans, you need to have at least 3.5% of the home value as a down payment to proceed with financing. This can even go up to 5% at times. However, a VA loan can help you with getting a new house with 0% down payment. As service members, it is quite challenging to build credit and save money. That’s because they have to be on the move continuously. A VA loan can be beneficial for such individuals. You don’t have to pay a dime, and you will be able to get a new home to call your own.
- You don’t have to worry about Private Mortgage Insurance (PMI)
By going for a VA loan, you don’t need to worry about Private Mortgage Insurance (PMI) as well. OMI is an insurance, which can protect lenders in situations where the borrower becomes default. Lenders are not willing to take any risk, and you will be asked to get PMI as a borrower. You will also have to pay the premiums of this insurance. However, you can refrain from spending your money unnecessarily on PMI when you go ahead with VA loans. In the long run, this can help you with saving thousands of dollars.
- You can get competitive VA interest rates
Another significant benefit that comes along with VA loans is that they offer competitive interest rates. If you are seeking for the lowest interest rates on the market, this is a great option available out there to consider. The lowest average fixed interest rate for a 30-year repayment period is offered by VA loans. The interest rates of a VA loan would usually vary in between 0.5% to 1%. This is much lower when compared to the traditional housing loans.
- It offers relaxed credit requirements
The credit requirements associated with VA loans are quite relaxed as well. In other words, you don’t need to have a super-good credit score to be eligible for the VA loans and secure a lower interest rates. This can provide peace of mind for individuals with a bad interest rates to buy their new houses. As a veteran, it is quite challenging to build a perfect credit score. However, VA loans can help them to overcome that challenge. On the other hand, VA loans are quite forgiving when bouncing back after foreclosure, bankruptcy, or short sale.
- It offers lifetime benefits
Last but not least, VA loans are capable of offering lifetime benefits to you as well. Most people assume that it will only provide a one-time benefit, which is not true. All the veterans who quality for the VA loans will be able to use this program for many times. You can make sure that the benefits available to you would not expire. In fact, there is no need for you to pay the VA loan unless you come across the need to use the benefit again. You will also be able to have more than one VA loan at a given time and receive a second-tier entitlement. Final words As you can see, VA loans are a great option available for eligible individuals to use as mortgage and buy a home. If you are eligible, you can take a look at these benefits and go for it. You won’t regret about the idea of getting a VA loan.
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