There’s no right choice when it comes to home loans, but for a lot of people, the benefits of VA Home Loans attributes are quite attractive. For example, the loan has easy underwriting, low rates, and provides many secondary benefits.
Moreover, the VA home loans are also backed by the U.S Department of Veterans Affairs, meaning that they are specifically designed to help active-duty military personnel and veterans. There are other certain groups that can also take the loan at a very affordable cost.
The biggest advantage of a VA home loan is that it does not ask for any down payment. You also do not need mortgage insurance and there are flexible guidelines for eligibility.
Here are the 7 biggest benefits of VA home loans in 2019.
You Do Not Need Mortgage Insurance
Normally, lenders will require you to pay for mortgage insurance if you take a loan and pay less than 20% down payment. This insurance is also known as private mortgage insurance and is necessary for conventional loans and FHA loans.
The basic idea of insurance is that it protects the lender if you are unable to pay the loan. VA home loans in 2019 require no such insurance or down payments. This makes it a very affordable option for many.
You Can Shop and Compare
Contrary to popular belief, VA loans are not funded by the VA. Moreover, the mortgage rates for these loans are also not set by the VA. In fact, these loans are offered by credit unions, US banks, mortgage lenders, and loan institutions.
Every lender has the right to set their own VA loan fees and rates. For you, this means that you can shop around and compare until you find the one that is best suited to your budget.
VA Loans are Available in Many Varieties
The good thing about VA Loans is that they are available in both adjustable and fixed-rate variants. They can be used to buy a new home, condo, duplex, and many other types of properties.
You can also use the VA loans to refinance your existing mortgage. They can also be used for home improvement or repairs or any kind of home upgrade. It really comes down to how you intend to use the funds.
The Closing Costs are Low
Perhaps the best thing about VA loans is that they limit the number of closing costs that can be charged to applicants. Lenders must abide by this rule. This makes the loan very affordable when compared to conventional loans which often have high closing costs.
The money you save from the closing costs can be used to buy off other assets such as furniture, and home upgrades.
They are Transferable
VA loans can be transferred to a family member if they are eligible for the loan. This is a great thing since if you want to sell your home, especially considering the rising mortgage rates in 2019, your home loan’s low rate and market rates will rise in the future.
Absolutely no Down Payment
The biggest reason why people love VA home loans is that you do not have to arrange a down payment to get the loan. This means that you can finance up to 100% of the purchase price of the home.
They are Backed by the Government
There’s a good reason why VA loans have such favorable terms. These loans are guaranteed by the federal government. A portion of this loan is paid to the lender even if you fail to pay the loan off on time.
This encourages lenders to offer VA loans to people more often.
How Can We Help?
Trying to find the right home loan can be difficult. Finding the right company to help you get your loan can be even more confusing. With literally thousands of lenders to choose from, borrowers can easily become overwhelmed.
Fortunately, at Aceltis Financial Group, our mission is to set a high standard in the mortgage industry. We are committed to quality customer service – putting the people we serve first. Take advantage of our expertise in the residential lending industry by applying online today. You will find that the skill, professionalism, and consideration we give to each of our clients make getting your loan a successful endeavor.