Are you thinking about buying a home? Did you serve in the military? Do you have VA home loan benefits? This can be a great way to buy a home!
One of the biggest benefits to VA loans is NO down payment! There are two loans that currently allow zero down – a VA loan and a USDA rural development loan.
The second biggest benefit is no monthly mortgage insurance! There is a VA funding fee that can be added to your mortgage, but nothing monthly and that can help lower your payment. The VA funding fee varies depending on whether or not you have used your VA benefits before and it can be waived if you have a VA related disability.
VA loans are backed by the government. The interest rates are typically lower than conventional loans.
VA loans may have lower closing costs. There are some fees that can’t be paid by the veteran – the seller can pay them, but not the vet.
VA loans may be easier to qualify for. If you have had some credit issues in the past, especially a bankruptcy or foreclosure, a VA loan may allow you to buy a home sooner than a conventional loan.
VA loans do not have prepayment penalties. VA loans can be a fixed rate or an adjustable rate loan.
VA loans are assumable – that can help when you sell the home!
Do you qualify for a VA loan? Here are some of the guidelines to see if you might qualify for a VA loan:
- You’ve served 181 days of active duty during peacetime
- You’ve served 90 days of active duty during war time
- You’ve served six years in the Reserves or National Guard
- Your spouse was killed in the line of duty and you have not remarried
If you think you might qualify for a VA loan, talk to your loan officer and see what you need to do to get an mortgage approval. You may be ready to buy now – especially since you do not need a down payment!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
