When a veteran has less than a 20% downpayment available, a Veterans Administration (VA) guaranteed mortgage is often an excellent choice. For many years, conventional financing options were so favorable that few veterans considered VA Mortgages. In today’s market, when I help a veteran review financing options, a VA mortgage usually ends up as the best choice.
If you are an eligible veteran, these are some reasons VA financing may be a good choice for you:
- For fully eligible veterans, there is no down payment requirement up to $417,000.00
- The seller may be willing to pay all of your closing costs.
- Even if you have used your VA eligibility in the past, you may still be eligible for a new VA mortgage.
- VA financing is very helpful for first time homebuyers, but being a first time homebuyer is not a requirement.
- The paperwork and approval process is very similar to conventional financing, but there are a few extra VA forms to sign.
- At Summit Mortgage, the approval and closing processes take about the same amount of time as conventional financing.
- VA interest rates are often the same as conventional financing and sometimes lower.
- VA financing is more tolerant of credit problems than conventional financing.
There are many things to consider when choosing the best financing program for your particular circumstances. When you are ready to purchase a home, if you are a veteran, don’t be surprised if a VA guaranteed mortgage is the best option for you.
