Are you in the market for a new home and also a Veteran? The good news there are tons of benefits that come with using a VA loan. The Gifford Group can help you with your home search
VA Loans - one of the greatest loans around. Learn the benefits
Dated: April 5 2021
Are you in the market for a new home and also a Veteran?
The good news there are tons of benefits that come with using a VA loan.
1. $0 down payment
No down payment on a VA loan. Most home loan programs require you to make at least a small down payment to buy a home. Rather than paying 5%, 10%, 20% down on the home’s purchase price and using up all of your cash. You can finance up to 100% of the purchase price using a VA loan. The VA loan is a true no-money-down home mortgage opportunity.
0% down in this market can save you lots of cash that can be used to furnish your new home.
2. Flexible Credit
Like all mortgage types, VA loans do require specific documentation, such as an acceptable credit history and sufficient income to make your monthly payments.
But with that said compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because the VA loan is guaranteeing the home loan.
The Department of Veterans Affairs genuinely wants to make it easier for military members, veterans, and qualifying military spouses to buy or refinance a home.
The VA has established no minimum credit score for a VA mortgage.
3. Lower Rates
VA loans are neither originated or funded by the VA. VA loans are offered by many of the same lenders you will shop for a home loan and are not direct loans from the government. So the mortgage rates you are quoted are not set by the VA but by the lenders.
This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.
See the current Rates here.
4. No Mortgage insurance
Typically, if you are putting less than a 20% down payment on a loan, the lenders require you to pay for mortgage insurance. This mortgage only protects the lender if you defaulted on the loan, and offers no protects for you!
This insurance is called private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan.
VA loans require neither a down payment nor mortgage insurance. That makes a VA-backed mortgage very affordable upfront and over time. You can always choose to have a down payment to lessen the cost of the mortgage if you choose to do so.
5. Low Closing Cost
The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans.
VA funding fee is normally wrapped into the loan; it does not add to the cash needed to close the loan.
Money saved on closing costs can be used for moving costs, home improvements, or anything else you choose to do with the saved money!
Bonus, we do have a local lender that can help you close on your new home very quickly. The average closing time on a VA loan with this local lender is only 22 days!
Thank you for your service!
Also, if you have a home, you can buy a new home before you list your home for sale, with our Home Swap program.
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