Out of the 21 million-plus veterans and service members who live in the United States today, only six percent were able to buy a home using a VA home loan in the last five years. That’s surprisingly low!
More often than not, eligible veterans are not able to make use of the VA home loan program because of a few reasons, the first of which is that they do not know about its advantages. Secondly, they probably think that like other processes, it’s an arduous one that’s better avoided.
Sadly, there are lenders who do not make the effort to educate veterans about the pros of this program. This is unfortunate because most non-military homebuyers wish they have access to a VA home loan.
If you are eligible to get this type of loan, you should know about these facts about it so you’ll have all the information you need to know to make the right choice for your home loan:
5 Facts About VA Home Loan You Need to Know
Fact #1: There’s No Down Payment Nor a Mortgage Insurance
One of the biggest pros of a VA loan is that you won’t need to worry about a down payment! That’s true. Conventional loans often require at least a 5% down payment. That might not seem much but if you’re buying a property worth $250,000 that 3.5% would still be $12500.
If you go for a VA home loan, you can immediately buy a house instead of waiting for months to save for your down payment. Additionally, you can avoid mortgage insurance fees with a VA home loan. Now, who wouldn’t want those savings?
Fact #2: You Can Use the Benefit More Than Once
Another good thing about VA home loan programs is that you can use it as many times as you wish. For instance, you have purchased a home now with a VA loan. Then you have outgrown the house and want a bigger one in a few years. Upon selling the home and paying off your existing VA home loan, you can reuse the same benefits to get another home.
You can even get a one-time restoration when you have paid off the VA home loan if you do not wish to move to a new home. This also applies if you have refinanced your VA mortgage with another loan.
Fact #3: Surviving Spouses May Be Eligible
Perhaps you have a fallen partner and you did not marry again. If you are a surviving spouse of a fallen service person, you can get the benefits of a VA home loan too. While there is no way to repay the spouse of any fallen hero, this benefit can greatly help you move forward with your family.
Fact #4: The Loan Rates Are Lower
VA loan rates are usually about .25% lower compared to conventional loans Because the VA backs the mortgages, this type of loan is a lower risk for lenders. Ultimately, the savings are enjoyed by veterans.
Also, VA loans have some of the lowest foreclosure rates among all loan types. It may be because veterans and service persons truly take homeownership as both a privilege and a responsibility. Also, they value the benefits that come with the VA loan.
Fact #5: VA Loans Are Available from Trusted Lenders
The VA home loan is also available from local private lenders and not the government. It’s not the Department of Veterans Affairs that handles the loan applications or approves the funds. You can get it from private banks as well as mortgage companies like Pennix Mortgage.
What the Department of Veterans Affairs does is provide insurance to lenders. This is called the VA guarantee – an assurance that the VA will shoulder the payments if the veteran is unable to do so.
Conclusion
These are just some of the facts that you need to know about VA home loans. Clearly, they’re all to your advantage, so there’s no reason why you shouldn’t take advantage of this awesome program.
If you are a veteran or a serviceperson and you are ready to buy a home in Cumming, GA, Pennix Mortgage is here to provide you with a VA home loan. We are one of the best mortgage lenders that offer excellent loan solutions to all our clients. Get in touch with us today to know about VA home loans
