VA Home Loan Programs Simplified
The fine men and women who sign up to protect our freedoms and keep us from harm deserve our utmost respect. Along with respect, their service earns them access to other benefits. One of the biggest benefits for veterans is the VA home loan program. This successful lending program has been around for many years and offers many benefits to the home buyer.
No Requirement for Down Payment Means HUGE SAVINGS
Most people that are in the market to buy a home will likely need some money for a down payment. Based on various factors, they could need between 3% and 20% of the asking price of the home. For a home priced at $185,000 that means the buyer will need between $6,475 and $37,000 at the closing!
However, a qualified veteran is not required to make a down payment on a home if they use the VA home loan. This allows them to overcome one of the biggest obstacles of purchasing a home.
Super Low Interest Rates
There was a time when conventional mortgage rates were significantly lower than the rates offered by the VA and FHA. That is no longer the case. Over the past 10 years the differences between conventional rates and government rates has almost disappeared. This allows veterans to get a home at a fixed rate that is as good as any other product.
Private Mortgage Insurance is Not Required
People that buy a home with low down payments, i.e. less than 20% of the home’s purchase price, are asked to pay private mortgage insurance. This insurance is a protection of risk for the lender. The insurance helps reimburse the lender if the homebuyer is no longer able to make payments on the property.
The VA home loan program does not require private mortgage insurance. This means that every dollar paid towards the home loan either pays the principal, the interest or the escrow. In many cases, this also means that the customer is saving money on their monthly payments.
As you can see, the VA home loan is designed to offer a great way for our Veterans to buy a home without putting unnecessary financial strain on their budget.
Inlanta Mortgage Madison
608 203 6355 NMLS #237450