Top VA Mortgage Loan Benefits
Were you ever in the military, or are you currently? If so, and if you want to buy a house, have you considered applying for a VA loan? VA loans are government-backed loans through the Department of Veterans Affairs and provide a way for military families to buy homes. In addition, these loans offer several significant advantages over other mortgage loan options. In this guide, you'll learn the top benefits of VA loans.
First, you can get more than one VA loan. While you can't have two at the same time, you can apply for another one if you had one in the past. For example, if you just sold your home that had a VA loan, you can apply for another one if you want to buy another house. The bottom line is you can get as many VA loans as you want in your lifetime. The only rule is that you can't have two at the same time. It's not a loan option that you can use just once, yet many people don't know this fact about VA loans.
Low Down Payment
Secondly, VA loans don't require large down payments. If you compare mortgage loans, you'll notice a difference with many factors, including down payment requirements. Some loans require larger ones, while VA loans don't. You might qualify for a 0%-down VA loan if you have an excellent credit score. However, many lenders require some money down, but they generally don't require large down payments. The amount you put down affects your funding fee charge.
No Private Mortgage Insurance (PMI)
PMI is an extra insurance coverage you must purchase with some loans when you don't put a large down payment on a home purchase. VA loans don't have PMI, but they do require a one-time charge. This one-time charge is called a funding fee. Lenders determine the rate by your loan amount and down payment amount. The funding fee rate decreases as a person's down payment increases. Thus, you have some control over the funding fee you pay with a VA loan.
Competitive Interest Rates
Additionally, lenders offer competitive interest rates on VA loans. You can compare VA loan rates with other loan options. When doing this, you'll see that the rates are relatively the same.
Get a VA Loan
Would you like to learn more about VAmortgage benefits? If so, contact a mortgage lender to learn more about the benefits and application process.