After released the information on VA mortgages as part of the GI bill, millions of veterans have used this program to buy homes. Due to various financial standings, many of these people wouldn’t have been approved for their home loans without the VA Loan program. Below, you can find the top 10 benefits of a VA loan.
1. Some of the lowest rates
There are typically low rates associated with mortgages that are guaranteed by the Department of Veteran’s Affairs. Most VA loans have fixed rates that will not increase over time.
2. No required down payment
This could be the most recognized benefit of the VA loan program. It has a $0 down payment requirement. That means with a VA loan; you do not have to have as much upfront money.
3. Other veterans who qualify for a VA Loan can assume your loan.
Typically, when a person is looking to buy a home, they must go out and get a new loan. With a VA mortgage, you can have the purchaser take over your current home loan if they qualify for a VA loan.
4. The ability to opt out of closing costs.
Most loans require closing costs. These fees make up a significant portion of the funding a typical borrower needs to have before purchasing a home. The is created to help veterans in almost every way by covering all of the closing costs and potentially saving the buyer thousands of dollars by using a VA mortgage.
5. If there are closing costs associated with a VA loan, it is the bare minimum. Some closing costs are not allowed.
The VA can help reduce specific closing costs that would be paid by the borrower. Some of the fees that are non-allowable by the VA are listed below.
- Some types of settlement fees
- The costs associated with loan closing
- Any document preparation fees
- Charges for conveyance
- Loan preparation prices
- The costs associated with the loan broker
- Any finder’s fees
6. Capped Mortgage Points
Some lenders assess fees to originate loans or to give discounted rates. Those fees are generally known as points. The VA loans program has a maximum value that is allowed to be charged to the borrower for origination. This means that the VA determines a reasonable amount for the lender to charge.
7. In place of a traditional bank appraisal, VA Loans offer the buyer a certificate of reasonable value.
The (also known as a CRV) is how the VA values the property you are purchasing. A CRV remains valid for up to six months. If for some reason another veteran were to buy the home you are in within the same six months; the CRV would be valid for that new veteran as well.
8. The VA mortgage program does not allow prepayment penalties.
With a standard loan, you will often be assessed a prepayment penalty fee for selling, refinancing, or paying off your mortgage prematurely in any way. Sometimes these fees can be thousands of dollars. With a VA home loan, you can avoid having to worry about this added cost.
9. The VA will conduct your home inspection
During the appraisal process, the inspector verifies that the home you are looking at meets the standards and codes set by the Veterans Administration. This process is part of getting the CRV. The VA inspector makes sure that the roof, furnace, and plumbing are all sound. The house must be habitable. If any home repairs must be made, the VA requires that the current owner of the home make them. The veteran purchasing the home cannot cover the cost of the repairs.
10. Refinance for a lower rate
Any Veteran who has bought a home using a VA loan can refinance their mortgage at a lower interest rate. This process is streamlined and allows the borrower to refinance without credit checks and a new appraisal that would be required by a standard refinancing.
VA Loans with NHL Lending
Here at , we offer a variety of mortgage options. Among those choices is the VA home loan. Our staff is knowledgeable about the VA home loan process and all the steps that you need to go through. We can help you with your VA qualifications and approval. With our expert team, we can jump-start the process and help you with any questions or concerns you may have. Contact us today to discuss getting your VA mortgage. We want to help make your homeowning dreams come true.