The VA Loan is available to veterans, active duty, reservists and National Guard members, note that some surviving spouses are eligible to take advantage of VA loans as well.
The VA Loan comes with significant benefits that can be used for multiple purposes. It’s an ideal loan that can assist with the purchase or building of a new home, repairing or improving your existing home, refinancing a current mortgage, or installing home efficiency measures.
One of the great things about the VA Loan Program is that it can be used more than once. For approved individuals who have earned the opportunity to use this program, they can take advantage of this great program over and over again throughout their lives.
VA Loans are backed by the government which means a few things; banks assume less risk which could possibly get you approved for a lower interest rate than you would qualify for from a bank without utilizing the program.
Listed below are a few of the benefits for taking advantage of a VA loan:
No Private Mortgage Insurance (PMI)
One important benefit as a result of having the federal government back the loans is that they assume the risk on behalf of the borrower thus not requiring the borrower to pay PMI.
The VA estimates its borrowers saved about $19 billion in mortgage insurance costs in 2012 alone.
No Down Payment
The ability to purchase a home with little to no money out of pocket is huge. For many civilians, coming up with a down payment is one of the most difficult things they will ever have to do.
Fighting Off Foreclosure
The VA Loan also helps veterans keep their homes, not only purchase a home.
The VA has safeguards in place to make homeownership affordable for qualified buyers by setting a limit on closing costs.
5. Interest Rates
Since the VA backs each VA Loan with a guaranty, financial institutions carry less risk and can offer interest rates that are typically 0.5 to 1 percent lower than conventional interest rates.
6. Credit Score
VA lenders can offer qualified buyers loans with a lower credit score than that of a conventional loan. The VA Loan generally will be approved with a credit score of at least 620.
VA loans have other benefits in addition to the standard loan. Reach out to a mortgage professional who is knowledgeable in handling VA Loans.
The Certo Team supports veterans by giving a portion of each closing to the American Warrior Initiative.
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