VA Loan Benefits
VA Loan Benefits – for many veterans, active military personnel, and surviving spouses VA loans are one of the best mortgage options on the market, VA loan benefits help millions of veterans, military personnel, and military families of owning a home.
The power behind the VA loan rests on VA loan benefits, some significant economic benefits not normally found on other types of mortgages. These VA loan benefits over various loan options are the main reason why the amount of VA loans has increased significantly over the last 15 years.
This historic profit program has helped millions of veterans, military personnel, and military families realize their dream of owning a home. These government-sponsored loans are arguably one of the best mortgage products today. Let’s take a look at the main VA loan benefits
No down payment for VA loans
The biggest VA loan benefit is that qualified veterans can buy property without a down payment. This great benefit allows veterans and service workers to buy a home without spending years on lump-sum payments.
Most mortgage programs require you to pay at least a small down payment to buy a home. VA mortgages are an exception. With a VA loan, you can raise up to 100% of the purchase price instead of paying 5%, 10%, 20%, or more of the home purchase price in advance.
No Need for Private Mortgage Insurance
Private Mortgage Insurance (PMI) is insurance that protects the lender in the event of a borrower’s default. Many traditional lenders require you to buy monthly private mortgage insurance unless the borrower can deposit at least 20%. Traditional borrowers have to pay this monthly fee until the house has 20% equity. The FHA loan comes with a unique form of monthly mortgage insurance. Unlike traditional loans and FHA loans, VA loans do not require monthly mortgage insurance. The lack of private mortgage insurance means that VA Loan Helps veterans who secured a VA loan last year can save up to billions of dollars in mortgage insurance costs over the entire life of the loan. Without the PMI, veterans can expand their purchasing power and save money.
VA loan guaranteed by the Government
There is a reason why VA loans come on such favorable terms. The Federal Government guarantees these loans. This means that even if for some reason you cannot pay monthly, part of the loan amount will be repaid to the lender. This Va Loans guarantee encourages and makes private lenders able to offer VA loans on very attractive terms.
Competitive interest rates
Another way VA loan benefits save Veterans money is a Veterans Affairs loan program is the lowest average fixed rate on the market. VA loans had the lowest average 30-year fixed rate on the market in the last six years. The interest rate of VA is typically 0.5 to 1 percent lower than traditional interest rates. Lower interest rates help veterans save monthly and for the life of their loan. Visit Just Funded Mortgage to see the current VA loan rates.
It is easy to qualify for VA Loans
Like other mortgage types, VA loans need specific documents, acceptable credit history, and sufficient income to make your monthly payments. However, VA loan guidelines tend to be more flexible when compared to other loan programs. This is made possible by the VA Loan Guarantee. The Department of Veterans Affairs wants to simplify the lending process for military personnel, veterans, and qualified military spouses to buy or refinance their homes. This easy way to qualify is one of VA loan benefits.
Va Loans Closing Cost
Closing costs are inevitable regardless of the mortgage product. All mortgages come with fees and closure costs, but VA actually limits the amount can charge veterans in connection with these costs. In fact, some of the costs and fees need to be covered by the other parties to the transaction. These safeguards help experienced homebuyers make home ownership available at an affordable price.
The VA borrower is able to ask the seller when they want to pay all loan-related closing costs and up to 4% perks that are able to cover prepaid taxes and insurance, collections, and judgment payments. In this case, do not have a guarantee that the seller will agree to this request, but veterans are able to certainly ask during the negotiation process.
No Prepayment Penalty
One of VA loan benefits is VA Loans do not have Prepaid Penalties and do not limit your right to sell the house during the term of the loan. VA Loans have no early repayment penalties or early repayment penalties. Furthermore, there are no restrictions on how to refinance a VA loan. For some loan types, repayment of your mortgage before it expires will result in a prepayment penalty.
This is because lenders are missing out on additional opportunities to collect interest payments. Early repayment penalties are a way for financial institutions to get back some of their money. The VA loan allows all the borrowers to repay their mortgage at any time they want without worrying about early repayment penalties. Borrowers also feel free to consider future home purchases and refinancing options without a prepaid penalty.
Assumability of VA Loans
Most VA loans are “acceptable”. This means that if the person is VA qualified, the VA loan can be transferred to a future home buyer. The assumable loan can be a great VA loan benefit for selling a home, especially in an environment where mortgage rates are rising.
Assumability of VA loans is not what many homebuyers think about profits, but it is still the profits of an attractive VA loan program. The VA loan assumption is a purchase transaction in which the buyer takes over the seller’s existing mortgage. The Benefits include:
-The buyer can accept the seller’s interest rate. This is a good selling point if lower dan current market conditions.
-Most of the closing costs when making a loan are not included
-Non-Veterans can take out a loan, but it does not disqualify the Veterans VA loan entitlement on the property.
– A veteran can save a VA loan qualification if the person taking the loan is also a qualified veteran and signs an entitlement change.
If you need more information about VA loan benefits, Just Funded Mortgage is available on Monday – Friday: 9:00 AM – 7:00 PM to answer any questions you have or give us a call at 833-888-3863.