WHAT IS A VA LOAN?
A VA loan is a mortgage loan in the U.S. The program is for American Veterans or current members serving in the U.S. military.
WHAT ARE THE BENEFITS OF VA LOANS?
NO DOWN PAYMENT
For those looking to buy a home with a VA Loan one of the most valuable aspects of VA loans that they don’t require a down payment. In fact, 100% of the home’s value can be financed with a VA home loan. While veterans do need to pay a fee to the VA upon loan closing (this fee helps to keep the VA home loan program funded for other veterans in the future), the fee is less than even a minimum down payment on any other loan type.
100% EQUITY CASH OUT
For veterans who already own homes, refinancing with a VA loan allows for the opportunity of 100% equity cash out. This is something many homeowners find to be extremely valuable, especially when it comes to saving for college or retirement, making home improvements, or even paying off higher interest debt such as credit cards or installment loans.
Even if a veteran owns a home with another loan type, he or she can refinance with a VA loan and still take advantage of being able to access up to 100% of their home’s equity. No other home loan type offers this benefit.
NO MORTGAGE INSURANCE COSTS TO WORRY ABOUT
In addition to those great benefits, VA loans do not have any type of mortgage insurance premiums or private mortgage insurance costs. Even if the veteran purchases a home with a 0% down payment, there is no insurance cost to factor into the home’s monthly mortgage payment with a VA home loan.
Other loans require mortgage insurance premiums for any down payment of less than 20% of the home’s value. This fact alone has the potential to save veterans up to a hundred dollars a month–or more, depending on the value of the home purchased– on their mortgage payments.
LIKELY TO HAVE LOWER INTEREST RATES
Lastly, VA home loans typically have lower interest rates than do other loan types. This isn’t always the case, but in the majority of instances, eligible veterans are offered lower mortgage rates on VA loans than on conventional or FHA loans.
DO I QUALIFY?
Most people want to know if they’re eligible to obtain one. Both active and veteran military members are eligible for VA loans, as are, in some instances, their surviving spouses. For a list of eligible service times and other eligibility circumstances, download the free VA loan guide.
https://en.wikipedia.org/wiki/VA_loan, https://nlcloans.com/trd_post/statistics-show-most-veterans-arent-using-va-loan-benefits/, https://www.veteransunited.com/valoans/8-unbeatable-benefits-of-va-home-financing/