5 Reasons to Choose a VA Loan

VA loans are an attractive option for veterans and some current military members. If you’re looking for a place to call your own but don’t have much money to put down or don’t have perfect credit, you may want to consider a VA loan.

What are VA Loans?

VA loans are government-backed loans offered to benefit those who served our country. Veterans and current military members with at least 90 days of service may be eligible for this flexible loan program.

VA loans offer simple underwriting guidelines and many benefits that make it easier for veterans to buy a home to live in, even if they don’t have much money for a down payment or perfect credit.

Why you Should Choose a VA Loan

Veterans have multiple loan options, including FHA and conventional loans, but there are some reasons to consider the VA loan.

1.    You Could Save Money on Interest

VA loans typically have the most competitive rates in the industry. They offer rates lower rates than a conventional or FHA loan allows, leaving you with a lower mortgage payment. Paying lower interest rates also saves you money over the life of the loan.

Even the difference of 0.5% can save you thousands of dollars over a 30-year term. It’s worth comparing the rates offered on the different loan types to see which will save you the most.

2.    You May Pay Fewer Closing Costs

The VA controls how much veterans pay in closing costs. There are certain closing costs lenders can’t charge or that veterans cannot pay. This keeps your out-of-pocket costs lower, making it easier to buy a home sooner.

This doesn’t mean you won’t pay any closing costs, as there are always closing costs on loans; however, if you need help covering them, the seller may help.

Sellers can help with the ordinary closing costs plus 4% in seller concessions if you need further assistance.

3.    You Don’t Need a Down Payment

Perhaps the largest reason to choose a VA loan versus any other option is the lack of down payment needed. You can borrow 100% of the home’s cost if desired. Plus, there aren’t any loan limits by county like FHA loans have.

Of course, you can make a down payment if you want to, which will only help your chances of approval, not to mention keep your mortgage payment lower. But if you don’t have the money saved to put down or don’t want to use all of your capital, you can borrow 100% of the agreed sales price.

4.    It’s Easy to Qualify

VA loans have the most flexible underwriting guidelines. For example, they don’t require perfect credit, a low debt-to-income ratio, or a large down payment.

As long as you prove you can afford the loan with consistent income and aren’t overburdened with other debts, you may qualify. The VA doesn’t require a perfect credit history; they’ll even approve your loan application if you recently had a bankruptcy or foreclosure. This differs from FHA and conventional loans, which typically have much longer waiting periods.

5.    The VA Helps you Avoid Foreclosure

Life happens, and the VA understands this. If you become delinquent on your mortgage payments, the VA may help you avoid foreclosure.

They always recommend contacting your loan servicer first, but if you don’t get anywhere with the servicer or are too nervous to call them, the VA can help.

Veterans can call 1-877-827-3702. This will get you in touch with your closest regional VA office. The representatives there will help you explore your options, including a repayment plan, forbearance period, loan modification, or short sale.

While these options may still hurt your credit, they are better than a foreclosure, and many will help you avoid losing your home.

Final Thoughts

VA loans are the most attractive loan option for veterans. You won’t pay mortgage insurance and can borrow as much as 100% of the sales price. The underwriting guidelines are flexible, and the VA offers veterans many sources of assistance, including keeping interest rates and closing costs low and finding ways to avoid foreclosure.

Questions About Buying A Home Using A VA Loan?

If you have any questions about buying a home using your VA Benefits, I encourage you to reach out to me anytime. I have great lenders that will get you pre-approved using your VA Benefits. I Encourage you to Call or Text me @ 561.660.0154 or use the Contact Form below to send me an email.

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