One of the biggest obstacles that prevents consumers from a home purchase is being able to save for the required down payment. Almost all types of mortgages have down payment requirements that can be as low as 3.5% for an FHA loan to a minimum of 5% for a conventional loan. However, for those who are or were part of the military, there is another option called a VA loan. Is a VA no down payment home loan really possible?
The good news is that a VA no down payment home loan is really possible and, for many years, has provided eligible consumers the opportunity to become successful homeowners. When comparing different types of mortgages, it is quite obvious why so many veterans will choose a VA loan. A VA no money down home loan allows those home buyers within a tight budget to make a home purchase without having to spend years to save money for a down payment.
In order for a home buyer to obtain a VA no money down home loan, the home must be appraised by a VA approved appraiser. The VA appraisal is not a complete home inspection and should not be used in lieu of a more detailed home inspection when buying a home. Because the VA appraisal does consider the condition of the home (safe , sound, and sanitary), this should not deter a borrower from choosing a VA loan over another program. A Notice of Value is issued by the lender once the appraisal is submitted to the VA and the lender reviews.
– Eligible VA borrowers included those who are active duty, honorably discharged, some surviving spouses and those who have completed six years of service in the National Guard or other selected service.
– Borrowers do not pay monthly mortgage insurance with VA no down payment home loans.
– Even though there is no down payment required, VA loans use residual income which helps borrowers to be better prepared to meet their financial responsibilities. For a full explanation of residual income, read our article VA Loan Shelter Expenses and Residual Income.
– VA loans are assumable.
– VA loans can be prepaid without any penalty.
– VA offers assistance to borrowers who may fall into financial difficulty in order to prevent default.
– VA no down payment loans are one of the safest mortgage products available. They also have the lowest foreclosure rate of any loan program.
– Some closing costs can be rolled into loan, thus allowing over 100% financing.
– Energy Efficient upgrades such as furnace, AC, water heater, windows and more can be added to the loan amount with nothing out of pocket.
– VA allows no down payment home loans even if you have owned a home previously, or have had a VA loan before.
Obtaining a VA no down payment home loan can easily be done online or by phone with a reputable VA lender. Even though there is no need for a face to face meeting, a VA approved lender can assist a borrower with obtaining eligibility status, pre-qualification, pre-approval and the final no down payment home loan.
Feel free at any time to contact me for more information about a VA no down payment home loan and how you can benefit from a VA loan.
My loan process was very easy and quick. Not to mention a great loan rate. I couldn't be happier!
Capt Sam T. - US Army
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