With a VA home loan, service members can borrow money from a civilian lending source, such as a bank, credit union or mortgage company. These loans differ from conventional loans in that:
1. The VA guarantees the lending source payment of the loan, if you default
2. The fees you have to pay at closing are reduce
3. The amount of your down payment is often reduced
4. You may be able to qualify to borrow more money, enabling you to buy a larger home
5. You may qualify for a lower interest rate
6. You don’t have to buy private mortgage insurance
Besides purchasing a home, condominium, town house, you can also use a VA home loan to:
1. Refinance a current VA home loan for a lower interest rate or to take out equity
2. Build a new home
3. Remodel, or repair an existing home
For more information about mortgage loan for Military veterans click here.
Protecting our nation is one of the most heroic things an American can do. And it's not an easy task. To be in the military means you have to sacrifice a lot for the good of the country, which is why servicemen and servicewomen, as well as veterans, deserve to be compensated for their bravery and courageous efforts to serve our nation.
To give back to these brave men and women, the US government offers a special VA loan, which is a great opportunity to afford the American Dream and be a homeowner. VA home loans are exclusive to those who bravely served our country and are available to those who have served our country and offer a number of advantages. Here are some of those benefits.
1. No Down Payment
When you purchase a new home, you are required to come up with a certain amount of money for the down payment. This can range depending on the total price of the home and can often be an expense that is quite costly. Many families have to save up for years to afford a new home's down payment. But with a VA home loan, that down payment is waived in the majority of cases. This means a veteran can become a homeowner with no money down, allowing them to have a piece of the American Dream a lot easier. It's the only loan available today with no down payment!
2. Lower Interest Rates
Another benefit of this loan is that the borrower usually gets a lower interest rate than what's ordinarily available with other types of loans. This translates to lower monthly payments and the borrower will be able to pay down the amount of their loan a lot faster than others with a higher interest rate.
3. No Private Mortgage Insurance (PMI)
As a result of the housing recession that happened some years ago, banks are now insuring themselves in case anything like that happens again with the addition of private mortgage insurance, which is an added fee to loans that don't have the needed 20% down payment of the appraised value of the home. This insurance protects the lender if you ever default on your monthly payments. Since military men and women don't need a down payment, they are not required to have PMI and this results in lower monthly mortgage payments.
4. Added Features
In addition to the aforementioned advantages, a VA home mortgage also offers benefits like: the right to prepay the loan without any penalties; the mortgage can be taken over by the buyer when the home is sole; and special counseling and help to veteran borrowers who are having financial difficulty.
There are some VA home loan requirements that a veteran will have to meet before they are eligible for the loan. Contact American Hero Mortgage (serving the Dade, Broward and West Palm Beach areas) to find out more information and to see if you qualify for the loan.