The United States government provides several benefits to veterans who have served in the military. If you are among those who have served, you may be eligible for a government backed VA loan. VA loans have helped over 25 million veterans finance the home of their dreams thanks to numerous benefits compared to standard home loans. Let’s take a look at a few of these benefits to see if a VA loan is right for you.
0 % Down Payment
Critically, VA loans require no down payment whatsoever. FHA loans are typically viewed as the most attainable mortgage type for those preparing to purchase their first home due to the low down payment requirements of around 3.5% of the total home value. VA loans make the barrier to entry for homeownership even lower by removing down payment requirements altogether.
No Private Mortgage Insurance
Private mortgage insurance is something you’ll want to factor in as you budget your upcoming home purchase. Individuals who take out FHA loans are required to pay monthly private mortgage insurance (PMI) premiums until they have reached 20% equity on their home. In other words, assuming you have made a down payment matching the required 3.5%, you’ll have to keep paying for PMI until that remaining 16.5% is paid off. With VA loans, PMI is not required in any facet whatsoever.
Exceptional Mortgage Rates
In general, mortgage rates and refinance rates have been quite low this year. Regardless of the industry rates at any given time, you are likely to find the lowest rates when exploring VA loans. Because VA loans are subsidized by the government, it’s easy to find competitive rates compared to conventional loans.
Reasonable Credit Requirements
In most cases, individuals with a credit score of 620 or greater are eligible to claim the benefits of a VA loan. The barrier to entry is lower for an FHA loan, but it may be worth taking the time to build your credit when considering the additional benefits a VA loan provides.
Secure Your 0% Down Mortgage with Mortgage Loans for Veterans
Consider Mortgage Loans for Veterans your point guard to lead the offensive and get that home you deserve. We will help you at every turn of the homebuying process. With our assistance, your dream home is closer than you think! Contact us today to get started!