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While there are multiple mortgage programs available for today’s consumers, not all are suited for homebuyers and existing homeowners. Some programs, such as VA loans, are backed by the U.S. government and are available to a specific group of people. Active military and veterans have the advantage of using a VA loan which offers specific benefits for borrowers. Eligible borrowers will find that a VA loan can help them in their goal to successful homeownership both at the onset and in the future.

U.S. Government Guarantee

A VA loan is a offered by the Department of Veterans Affairs and is backed by the U.S. Government. The benefits of a VA loan are many, but include low mortgage rates that are competitive amongst lenders and unique underwriting guidelines.

No Down Payment Required

While the majority of mortgage programs require at least a small down payment, the VA loan program will allow you to finance up to 100% of the purchase price.

No Mortgage Insurance

Even though a VA loan allows for 100% financing, there is no need for mortgage insurance. This makes a VA loan much more affordable throughout the term of the mortgage.

No Prepayment Penalty

There are no restrictions or time tables to keep regarding penalties with a VA loan. A borrower may sell their home or refinance at any time they wish without having any penalties or additional costs.

Competitive Rates and Fees

VA mortgage rates are not set by the VA. Since these loan carry the VA guarantee, lenders set their own VA rates and fees which make them very competitive. This benefits borrowers who can shop and compare which one is the best to suit their needs and budget.

Loan Options to Choose From

VA loans can be obtained with a fixed rate or adjustable rate when purchasing a home or refinancing. In addition, borrowers can make improvements, repairs or even energy efficiency to their home with a VA loan.

Limited Closing Costs

The VA also limits the closing cost fees that a lender can charge to the borrower. This is just another way the borrower is protected by VA in an effort to keep these loans affordable.

Funding Fee

While a VA loan requires a funding fee, it is not required to be paid as cash. This fee can be financed with the loan so that the borrower does not need cash to close. In addition, there are some borrowers who will not pay a funding fee which depends on their individual criteria.

Seller Paid Closing Costs and Concessions

A VA loan allows sellers to pay closing costs, as well as, concessions. These are 2 different ways a home buyer can save even more money.

Assumable Mortgage

VA loans are assumable which means that you can sell your home to another homebuyer who is eligible for a VA loan. This becomes a valuable benefit in the future if your VA loan was obtained with today’s low VA mortgage rates.

VA loans were created to help those who have served our country. Those who are eligible should seriously consider this type of loan before any others. Feel free at any time to contact us to find out how a VA loan can help you, more information about  a VA loan or for a free no obligation quote.

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