At this time, getting a home loan can be very difficult, and for a military member or their family, it can be even more challenging. However, did you know that utilizing your VA benefits could allow you the ability to get a mortgage when you might otherwise fall short of most lenders’ requirements? Continue reading to learn a few of the top reasons borrowers just like you, here in the Fort Lauderdale area, have decided to utilize the home loan program offered through the VA.
VA Loan Qualifications
To qualify for a VA loan, you must meet a few guidelines put in place by the Veteran’s Administration. Most active military men or women who have been in service for a set amount of days will qualify. Additionally, most spouses of service people killed during active duty or who died due to a service-related disability are also eligible for the VA loan. You can find a full description of the qualifications on the VA’s website.
$0 Down Payment
This is one of the most positive and well-known features available for VA loan packages. When you qualify for a VA loan, you are not required to place any type of down payment for your mortgage. Even though there is not a requirement for a down payment, borrowers can still offer a down payment to help with overall interest costs as well as to try to get a lender to secure a lower interest rate for their loan.
Lack of Private Mortgage Insurance
Unlike your standard conventional loan or even the FHA loans, Private Mortgage Insurance (also known as PMI) is not required on VA loans. PMI is a monetary charge that is assessed by the lender every month until over 20% of the house loan has been paid off. This fee helps to protect the lender should the borrower default on their mortgage. Because the VA guarantees these loans, there is no need for the financial institution to charge the borrower for PMI.
Better Interest Rates
Though the VA program does not guarantee better interest rates, it is typical forlenders to offer VA mortgage recipients a lower rate. This could be partially due to the credit score and risk assessment standards that are in place by the VA, or it could be primarily because the lender has less risk involved due to the loans backing by Veteran’s Affairs Administration. Regardless of the cause, it is pretty standard to see VA loans with reasonable interest rates.
Though a “VA home loan” might be listed as your mortgage type, there are still different loan options that can be customized for individual borrowers. Among the options listed above, the following choices are available for every VA loan recipient to consider.
• Type of interest rate offered
• Length of the loan
o Usually adjustable in 5-year increments.
Little to No Closing Costs
With most VA loans you can expect a reduction in closing costs with some types of closing fees forbidden by the loan program to be included in the price at all. Depending on the loan, you can expect that the seller will cover some or even all the closing costs themselves. If there are costs that are required for the borrower when closing arrives,regulations allow you to include those fees and expenses in the loan financing. This keeps the $0 down requirement factual by making sure that having cash up front does not hinder any VA loan recipient’s ability to buy ahome.
Even If You Have Used the VA Loan Program Before, You Can Qualify Again
This is not a one time and never again kind of VA benefit. As long as you qualify to get aVA loan and you do not have another current or active VA loan, you can get a new one. This program was designed by Veteran’s Affairs to ensure that United States servicemen and women can obtain homes for themselves and their families,not just once but for as long as they need a new place to live.
NHL Lending and Your VA Loan Benefits.
Here at Nationwide Home Loans, we have a professional and experienced staff. Our team has worked with VA Loan regulations regularly, and we know how to assist borrowers with the specialized application process. With our loan officers helping you every step of the way, you will find that the path to a new home for you and your family is quick and easy. Contact our Fort Lauderdale lending office andlet our team here at NHL Lending set you up with a VA home loan today.