What To Know About VA Loans

When it comes to achieving the American dream of homeownership, veterans have a unique advantage through the VA home loan program. These loans, guaranteed by the U.S. Department of Veterans Affairs, offer a host of benefits that make them a compelling choice for veterans and active-duty service members. Members of the Reserve and National Guard, as well as spouses of veterans or service members, may also be eligible for a VA loan.  According to Veterans United, less than 12% of the country’s estimated 24 million veterans are currently using their VA loan benefits. This is an underutilized offering that more people should take advantage of. In this blog, we'll explore why using a VA home loan is a smart decision for those who have served our nation.

No Down Payment Required

One of the most appealing aspects of VA home loans is that they allow veterans and active-duty military personnel to purchase a home with no down payment. For many prospective homebuyers, saving for a substantial down payment can be a significant obstacle. The VA loan program eliminates this barrier, making homeownership more accessible to those who have served our country.

Competitive Interest Rates

VA loans typically offer competitive interest rates, often lower than those available through conventional mortgages. This means that over the life of your loan, you'll pay less in interest, allowing you to save more money or afford a larger and more comfortable home.

Flexible Credit Requirements

While good credit is essential for any loan application, VA loans tend to be more forgiving when it comes to credit requirements. Veterans with less-than-perfect credit may still qualify for a VA home loan, which can be a lifeline for those who may have encountered financial challenges during or after their service.

No Private Mortgage Insurance (PMI) Required

Unlike conventional loans, VA home loans do not require private mortgage insurance (PMI). This can lead to substantial savings since PMI is typically added to the monthly payment for those who cannot make a 20% down payment on a conventional mortgage. By avoiding PMI, VA loan borrowers keep their monthly housing costs lower.

If you want to learn more about VA loans and see if you could qualify, give us a call! We work with multiple lenders who specialize in this type of loan and would love to help you utilize this program to make your dream of owning a home a reality. 

To learn more about the VA home loan program, take a look at this page from The Department of Veterans Affairs.