Advantages of Financing With a VA Mortgage
A VA mortgage has numerous advantages for a borrower purchasing a new home or a homeowner who is refinancing his or her current mortgage.
This type of loan is specifically for veterans or service members currently serving in the U.
S.
military.
It is an exclusive benefit available to them in return for their service to this country.
This type of financing is known for its great rates, flexible loan requirements and easy qualification guidelines.
Save Money When Purchasing a Home with this Loan This type of loan is especially great for veterans and current military members who are first-time homebuyers because of the large amount of money it saves them.
These loans do not require a down payment on home purchases, unlike most conventional home loans.
Borrowers can use the money they save for other home expenses or for their personal use.
If eligible, borrowers can also qualify for the first-time homebuyer's tax credit, which can be up to $8000.
This incentive is ending soon, so new homebuyers should act now.
Current Homeowners Save Money with this Loan Because this type of financing is known for having lower interest rates than most other home loans, homeowners can save money each month on their monthly mortgage payment.
This money can be used for other bills or for personal expenses.
This loan also does not require any mortgage insurance, which is typically required on most home loans.
The absence of this requirement also leaves homeowners with more money in their pockets.
If interest rates have decreased since the original mortgage was taken out, homeowners can refinance their current mortgages in order to receive the new, lower interest rate.
The lower rate can lower their monthly mortgage payments and save them thousands of dollars in interest over the life of the loan.
A homeowner may also refinance their current mortgage to consolidate debt or receive cash back.
Requirement of this Loan To qualify for this type of financing, the applicant must be a veteran or current service member and meet certain service length requirements.
If the borrower is a veteran, he or she must have been discharged from the military under conditions other than dishonorable.
The Department of Veteran Affairs does not have strict credit or income requirements, but it is required that borrowers have clean credit histories of at least twelve months.
Most lenders will require a borrower to have a credit score of at least 620 to qualify for a loan.
There are also a couple of credit/income requirements, including a minimum residual income requirement and a maximum debt-to-income ratio.
Borrowers are required to escrow their taxes and insurance to ensure that all payments are kept up to date.
The fees associated with the loan, such as the funding fee and title insurance, can be financed into the loan to lower the borrower's out of pocket costs.
A VA mortgage can save both new homeowners and current homeowners a great deal of money in the present and over time.
Interest rates are currently low, but they always have the potential to increase based on changes in the market.
Now is a great time to take advantage of this loan while rates are still low.
This type of loan is specifically for veterans or service members currently serving in the U.
S.
military.
It is an exclusive benefit available to them in return for their service to this country.
This type of financing is known for its great rates, flexible loan requirements and easy qualification guidelines.
Save Money When Purchasing a Home with this Loan This type of loan is especially great for veterans and current military members who are first-time homebuyers because of the large amount of money it saves them.
These loans do not require a down payment on home purchases, unlike most conventional home loans.
Borrowers can use the money they save for other home expenses or for their personal use.
If eligible, borrowers can also qualify for the first-time homebuyer's tax credit, which can be up to $8000.
This incentive is ending soon, so new homebuyers should act now.
Current Homeowners Save Money with this Loan Because this type of financing is known for having lower interest rates than most other home loans, homeowners can save money each month on their monthly mortgage payment.
This money can be used for other bills or for personal expenses.
This loan also does not require any mortgage insurance, which is typically required on most home loans.
The absence of this requirement also leaves homeowners with more money in their pockets.
If interest rates have decreased since the original mortgage was taken out, homeowners can refinance their current mortgages in order to receive the new, lower interest rate.
The lower rate can lower their monthly mortgage payments and save them thousands of dollars in interest over the life of the loan.
A homeowner may also refinance their current mortgage to consolidate debt or receive cash back.
Requirement of this Loan To qualify for this type of financing, the applicant must be a veteran or current service member and meet certain service length requirements.
If the borrower is a veteran, he or she must have been discharged from the military under conditions other than dishonorable.
The Department of Veteran Affairs does not have strict credit or income requirements, but it is required that borrowers have clean credit histories of at least twelve months.
Most lenders will require a borrower to have a credit score of at least 620 to qualify for a loan.
There are also a couple of credit/income requirements, including a minimum residual income requirement and a maximum debt-to-income ratio.
Borrowers are required to escrow their taxes and insurance to ensure that all payments are kept up to date.
The fees associated with the loan, such as the funding fee and title insurance, can be financed into the loan to lower the borrower's out of pocket costs.
A VA mortgage can save both new homeowners and current homeowners a great deal of money in the present and over time.
Interest rates are currently low, but they always have the potential to increase based on changes in the market.
Now is a great time to take advantage of this loan while rates are still low.