Finding and securing an affordable home loan can be overwhelming, but the U.S. government has streamlined the process for the brave men and women who serve our country. More than 20 million military families have benefited from the Department of Veterans Affairs mortgage assistance program. You and your loved ones could be next.
We’re excited to help you get started. Keep reading to learn about the benefits of VA loans that you may not be aware of, and let us steer you toward the best mortgage offers.
Flexible, Accessible and Easy to Apply For
The mortgage assistance program is designed to thank you for your valuable service, so affordable funding is within reach and easy to apply for.
VA home loans apply to traditional houses, condos and manufactured housing. You may use your loan to purchase a home or refinance your existing one. You can even borrow funds to make modifications to your home if you’re disabled. The program is open to veterans, National Guardsmen, active duty personnel and surviving spouses.
There are fewer qualifications for obtaining a VA mortgage loan than for conventional funding. These include:
- A certificate of eligibility
- Proof of sufficient income
- A reasonably good credit score
- Certification that you will live in the home
- Other applicable documents
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No Down Payment? No Worries
Most home loans require a hefty down payment as high as 20 percent. One of the nicest perks for veterans is the zero-percent-down feature. In most cases, no down payment is required.
No Need for Private Mortgage Insurance
Civilian buyers who are financing more than 80 percent of their home must purchase private mortgage insurance. Since the government backs VA loans, this requirement is waived, meaning you could save money.
Lower Interest Rates
The government guarantee gives lenders more flexibility with interest rates. That’s why lenders can offer you the most favorable terms for your financial circumstances and unique needs.
Several factors affect your interest rate, such as the current market conditions, your credit score, your debt-to-income ratio and the duration of your loan. Thirty-year loans, for example, have higher rates than 15-year loans.
On average, VA loans cost approximately 0.25 percent less than standard home loans. Here’s how the rates compare:
- Conventional 30-year fixed mortgage — 3.5 percent
- VA 30-year fixed mortgage — 3.25 percent
If you can swing a higher monthly payment, you’ll save even more in the long run. A 15-year fixed VA loan is currently at a rate of 2.875 percent.
Most economists expect rates to go even lower in the coming months.
Added Savings and Protection
VA mortgages usually come with additional savings such as fewer fees. If you have a service-related injury, you may qualify for lower closing costs. The right to prepay without penalty is yet another benefit.
With adjustable-rate mortgages, borrowers are typically exposed to greater risk. Interest rates could climb at any time. Government-backed adjustable-rate mortgages, however, provide veterans with extra layers of protection.
Explore Your Options Today
VA loans minimize your risk without limiting your options. They have the lowest foreclosure rates in the U.S.
You served us, and we look forward to serving you.