Owning a home is a dream for many Americans. Fortunately, active military personnel and veterans have a strong tool at their disposal to assist them in realizing that goal. Hence, this blog explores the benefits of a VA loan and who qualifies, using simple words and clear explanations.
No Down Payment Required
The fact that there is no down payment required for a VA loan is one of its main benefits. The majority of conventional loans require an upfront payment of 3% to 20%, which can be substantial. However, a VA loan allows you to purchase a home with no down payment. Clearly, this implies that even if you haven’t saved a lot of money, you can still become a homeowner more quickly. (Read more about “Homeownership with Low to No Down Payment Options!”.)
No Mortgage Insurance
VA loans help you save money every month because they don’t require mortgage insurance. Many loans with low down payments charge mortgage insurance to protect lenders in case of default. However, the VA guarantees a portion of the loan, so lenders don’t need extra insurance. As a result, you can enjoy lower monthly payments and put that money toward other important things. (Learn about “Why Mortgage Insurance is a Blessing!”.)
Competitive Interest Rates
Lenders usually offer better rates because the Department of Veterans Affairs backs VA loans. Definitely, these rates are often lower than those on conventional loans. Besides, a lower rate means you pay less interest over time, which saves you thousands of dollars. Therefore, this is one of the strongest benefits of a VA loan and who qualifies. (Get insights about “Higher interest rates or Higher purchase prices: Which one makes more sense”.)
Flexible Credit Guidelines
Not everyone has a perfect credit history, especially after military service. Thankfully, VA loans are more forgiving than other loans. Lenders often accept lower credit scores for VA loan applicants. In addition, you may still get approved even if you’ve had past money problems. Obviously, this makes VA loans an excellent choice for those rebuilding their finances. (Find out more about “Can You Use Seller Credits with Down Payment Assistance? Yes— Here’s How It Works”.)
Who Qualifies?
VA loans are designed for people who serve or have served in the military. Active-duty members, veterans, National Guard members, and some surviving spouses may qualify. Furthermore, the time you need to serve depends on your category. In most cases, it ranges from 90 days to two years. Additionally, you must also have a valid Certificate of Eligibility (COE) from the VA.
Get your copy of the First-time Home Buyer Guide for FREE. Click here.
Takeaways
The benefits of a VA loan and who qualifies can make a huge difference in your path to homeownership. VA loans offer real advantages, from skipping the down payment to enjoying lower monthly costs. Moreover, they are flexible, affordable, and built to serve those who served our country. Thus, speak with a VA-approved lender today if you think you might be eligible. Indeed, understanding the benefits of a VA loan and who qualifies could be your first step toward owning the home you’ve always wanted. (Read more about “My Benefits as an Active Duty Service Member for VA Loans”.)