Since we just celebrated Veteran’s Day, I thought it was a great time to remind people about the benefits to VA loans! The biggest benefit for vets is that a VA loan doesn’t require a down payment! Here are some other benefits to those that can qualify for VA loans:
-Along with no down payment, there are also some closing costs that can’t be charged to the veteran. That means not only zero down, but also lower closing costs!
-There isn’t any monthly mortgage insurance. You will be charged a VA funding fee. The amount will vary depending on whether you have used your VA benefits before and also if you are putting down a down payment. If you have a VA related disability, the VA funding fee may be waived. The VA funding fee can be added to your mortgage.
-VA loans are assumable. This means when you decide to sell your home, you can sell it with an assumable mortgage. The buyer has to qualify for your loan, but they will get your interest rate – with rates increasing, that may help you sell your home faster. If you do decide to let someone assume your mortgage, it can affect your ability to use your VA loan again – that is something to keep in mind when you are selling.
-It can be easier to qualify for a VA loan than a conventional loan. Talk to your loan officer and see if it makes more sense to use a VA loan.
-VA loans are guaranteed by the government. The government guarantees that a portion of the loan will be repaid by them if you default on the loan.
How do you know if you are eligible for VA financing? You can go online and check to see what your eligibility is in the VA benefits portal. Here is a quick list of those that can be eligible:
- You’ve served 181 days of active duty during peacetime
- You’ve served 90 days of active duty during wartime
- 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
Your VA eligibility never expires. If you have never used it, you can use it now. If you aren’t sure if it’s the right mortgage for you, talk to your loan officer. Not every mortgage company offers VA loans, so you may need to make sure your lender can.
And most important – thank you for your service to our country. I appreciate the sacrifices you and your family made for us.
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
