If you're in the market for a new home and you're beginning to compare your home loan options, you may be thinking of taking out a VA home loan. This is a good option for veterans, active military personnel, and their families. You may be wondering if a VA home loan is a good choice for you. This type of loan comes with many advantages over a traditional home loan. Here are some of the top benefits of a VA home loan:
No Need for a Down Payment
When you save for a home, it can take a long time to come up with a decent down payment. While most conventional loans will require you to make at least a 3% or 5% down payment, VA home loans are different. There is no need for a down payment, making it possible for you to buy a home sooner. This can also help to cut down on some of the stress that comes with buying a home.
Very Low Closing Costs
When you take out a VA home loan, you will have the added advantage of low closing costs. This expense usually eats up a lot of money for traditional loan home buyers, so it's a nice extra way to save.
No Private Mortgage Insurance
For homeowners who use a traditional home loan and don't make at least a 20% down payment, they're usually required to pay additional private mortgage insurance. This money is charged in case the individual defaults on their home loan. When you take out a VA home loan, there is no private mortgage insurance, even though you don't pay any down payment. This is another way to trim your monthly costs for your mortgage.
Less Strict with Credit Requirements
Some home loans require you to have a very good credit score in order to qualify for the loan. With VA home loans, they have less strict credit requirements. That means, if you're still building your credit, you have a chance to get a home loan. This is a perfect option for those who don't have a perfect credit score.
As you can see, there are many benefits to taking out a VA home loan. If you want to take out a mortgage and are a service member or a veteran, this is an option that is worth exploring. Contact a VA home mortgage lender in your area, such as VA Loan Lending, to learn more or to apply for a loan.
Share16 October 2019
When I began my first business selling sports equipment locally, I knew the sports-world well, and I knew how to run a business. One thing I did not know a lot about was the financial world. I had never applied for a loan in my life other than when I financed my car with the dealership in-house financing. My first application at a large bank was denied. I began looking into my other options, and I found that there were more lenders for new businesses than I realized. I applied at local credit unions, local banks, and other business lending services. I was able to secure more funding than I even expected, and my credit is just average. I created this blog to help other new business owners realize that there is funding out there. You just have to find it and apply! Don't give up on your dream.