When it comes to buying or refinancing a home, the mortgage options are seemingly endless. There are literally loans for almost any scenario you can imagine. Whether you’re single mom looking to buy your first home or you’re newly retired and on a fixed budget, there’s a loan program for you.
So, then, why should you choose a VA home loan? These flexible, government-backed loans are loaded with benefits, no matter your circumstances, all of which can help tear down the barriers to homeownership.
With competitive rates and flexible terms combined with some of the more popular signature benefits, a VA home loan is a no-brainer for many. Here are just a few reasons why a VA mortgage is the way to go:
- No Down Payment: This is a biggie. Saving for a down payment can be challenging to say the least. As home prices continue to rise, saving for a home can seem like an uphill battle. Especially when you consider the fact that many active-duty and veteran military members have single-income households. With a VA home loan, qualified veterans can finance up to 100 percent of a home’s value. Just think that with the median purchase price of a home in the United States hovering around $300,000, a 20 percent down payment on a convention home loan equates to $60,000.
- No Private Mortgage Insurance: Anytime a buyer puts less than 20 percent down on a home, or a homeowner refinances with less than 80 percent loan-to-value, you have to pay private mortgage insurance. This costly fee is put in place to mitigate the risk involved with low-down-payment loans. However, VA loans do not require PMI, which can save borrows hundreds of dollars a month. This is thanks to the federal government’s backing of the loan.
- Competitive Interest Rates: For many homeowners and homebuyers, the loan they choose comes down to the interest rate. Fortunately, for current and former members of the armed forces, VA home loans offer interest rates that are on par or better than conventional mortgages. Due to the limited risk of VA loans to the lender, lenders are typically able to offer VA borrower 0.5 to 1 percent interest rate reduction over conventional loans.
For more information on a VA home loan or streamlined refinance, contact us today at 888-320-7888.