If you are a former or current member of the military, you must be aware of the Veterans Affairs (VA) Loan Program. Launched in 1944, the VA loan program provides loans to veterans and service personnel for buying residential properties.
The VA loan comes with a Department of Veterans Affairs guarantee. However, private lenders, including banks and mortgage companies, issue them. Here are some facts you need to know about these loans:
Borrowers can choose from a variety of VA loans, such as interest rate reduction refinance, purchase loan and cash-out refinance.
Depending on an individual’s needs, they can select the loan that suits their personal and financial needs. But, the biggest advantage of VA loans is that borrowers don’t need to submit a down payment. This is because VA loans are the Department of Veterans Affairs guarantees the loan in the event of a default. Therefore, VA lenders are fully protected.
Military members can apply for a VA loan. This may include veterans, active duty staff, National Guard and Reserve Member, as well as their spouses.
With a VA loan, a military member can purchase a primary residential property in areas where conventional loan financing is not readily available. This may include far flung, rural areas, small towns, and so on.
The VA program is one of the best loan options for military members. VA loans are much more financially feasible than conventional mortgage loans. Borrowers can secure a full home loan, without having to make down payment.
In addition, the interest rate on a VA loan can easily be negotiated. As the Department of Veterans Affairs provides loan guarantee, borrowers do not need to pay mortgage insurance. On the other hand, conventional loan borrowers are typically required to make mortgage insurance payment every month. Furthermore, borrowers can also pay off their loan ahead of time, without penalty.
In order to apply for a VA loan, you need to fulfill these conditions:
If you’re struggling to find a VA loan lender, our mortgage loan advisors can help you connect with the right lender. With a wide network of partners, we help you get a quote completely with no-obligation.