VA Loans - one of the greatest loans around. Learn the benefits

Dated: April 5 2021

Views: 5

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 and help get you into your new home! Here are some of the biggest reasons to use your VA loans Benefits.  

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! 

VA Loan Benefits

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! 

Start here and figure out much your mortgage will be and then we can help get you connected to a great local lender.  Begin your home search today and start using your VA loan benefits.  

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. - "Opening Doors To New Beginnings"  




Blog author image

Amber Odle

Amber’s love for real estate comes naturally. She utilizes her creativity to tell a story of what could be by providing her clients the vision through their own eyes. “I’ve always loved creating....

Latest Blog Posts

VA Loans - one of the greatest loans around. Learn the benefits

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

Read More

Multiple Offer Madness! Low Inventory Warning!

The buying frenzy continues as multiple offers become the norm and buyers offer thousands or tens of thousands above the asking price to try to get the home they want. In many cases, buyers also are

Read More

Low-Interest Rates on Mortgages likely to continue for 2021

Anytime you borrow money there’s a cost for the privilege. That’s no different for mortgage loans, which you rely on during the home buying process.This year we are seeing 

Read More

Can I Purchase A New House Before My Divorce Is Over?

There is no one-size-fits-all on this topic. Getting a divorce is a stressful time as your life is being flipped upside down, and now you might not have a place to call home or a place that you want

Read More