Since Memorial Day was Monday, I thought it would be a great week to say thank you to all who have served our country. For those that serve in the military, you get several benefits – one of those being a VA loan. There are others that you may qualify for such as education assistance and maybe health insurance or survivor benefits but housing is one that everyone thinks about!
A VA loan is a great way to buy a home if you are a vet – or currently active duty. VA loans allow you to buy with zero down – that can truly help anyone trying to buy a home! Allowing you to buy with zero down is one of the biggest benefits of a VA loan.
VA loans do not require mortgage insurance – that can save you a substantial amount on a monthly payment – an FHA loan at $200,000 will have a $141 monthly mortgage insurance payment for the life of the loan. VA loans do require a VA funding fee that is added to your mortgage. The amount varies based on whether or not you have used your VA loan before and if you are putting money down. If you have a VA related disability, the VA funding fee may be partially or completely waived.
VA loans do not have prepayment penalties – you can sell your home and pay off your mortgage whenever you are ready to move.
VA loans are also assumable – meaning that you can sell your home and the buyer can assume your mortgage – as long as they qualify. With interest rates climbing, that may be something that you want to consider when you are ready to sell. The downside to that is if you let someone assume your mortgage, you can’t use the VA loan again until it has been paid off – or down enough to allow you to use your VA benefit again.
VA loans can have lower closing costs than a regular loan. The VA limits the closing costs that the borrower can pay. That can also save you money to use on other items for your new home! VA interest rates may be lower than conventional interest rates too -that can also help save you money.
VA loans are available to more than just veterans – active duty personnel and surviving spouses of veterans can use them, cadets at the US Military, Air Force or Coast Guard Academy, midshipmen at the US Naval Academy and officers at the National Oceanic & Atmospheric Administration can qualify. There is a minimum term of service that is required.
VA loans are a terrific benefit to those that have served our country. Not all lenders will work with VA loans, so you may need to check with more than one lender. Make sure you ask about the possibility of using your VA benefit! You earned it and it may help you get into a home sooner than you expected.
Thank you to all that have served our country and are currently serving – I truly appreciate your time – I know how hard it can be on both you and your family.
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
