Benefits of a VA Loans

ff-5This is probably one of the best times for servicewomen and servicemen to refinance or get a home for themselves. This is contrary to what many Americans think. The mortgage rates are at an all-time low, and many home owners are selling their properties at a discounted price. If you have good credit and income, you can take advantage and purchase a home right now.

The military personnel have been afforded great benefits through the Veterans Affairs Home Mortgage Loan program. The VA home loan is selective, and those that can take advantage of the program include current service members, veterans, and surviving spouses. The loan is not only used to get a new home; it can be used to build a new home, finance an existing mortgage, repair and innovate an existing home, among many other homes related things.

When compared to conventional home loans, VA loans may seem disadvantaged because the conventional ones have lower advertised rates. The advantage of VA loans over the conventional ones is that it does not require a high credit score to get the best rates. The reason for the low credit score for VA loans is because the government backs them. What this means is banks assume less risk and will price it lower than the usual bank rates. Apart from this, there are some other benefits such as the ones listed below.

 

VA Loans Benefits

  • If you are among the group of people that are listed to benefit from the VA homes loans, you won’t be denied a loan because of a low credit score. Besides, most lenders do not tier interest rate for higher scores. The VA home loans program only considers the last 12 months when checking for credit history.
  • Unlike most conventional home loans, VA home loans does not require any deposit or down payment. The advantage of this is it saves one up to 20% of the loan amount when compared to the conventional home loans.
  • Borrowers have the option to refinance to a lower loan rates within the VA loans program with having to go through a re-qualifying process of the VA Streamline Refinance Loan.
  • The VA loans programs has an extra benefit to the disabled. Any member that has a service-related disability may get a waiver from the lender for the funding fee. Such people benefit by having a reduced closing costs.

You do not have to worry about where to get the services. There are a number of financial institutions, such as Flagship Financial, that you can approach and they will take you through the process and answer any questions that you may have.

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