As a veteran or active service member, you know how hard it is to get a conventional home loan. It's hard to build up the credit you need to move forward with buying property. Because of this, it feels as though you'll never be able to get ahead. However, there is another option. Wilton Manor VA home loans can get you on the property ladder. Here's why you should consider one.
No Down Payment
One of the most immediate and fantastic benefits of a VA loan is that you're not required to put a down payment down. It's difficult to get the money together for a down payment when you're in active service or have just returned from service, so this is a huge boon.
Having this perk means that you can get into your own home now, rather than having to spend years saving up and living somewhere that isn't quite right for you. There's no better feeling than being approved for a loan right away, and being able to say yes to that dream home.
No Mortgage Insurance
If you were to go for Wilton Manor FHA loans, which is another form of low cost mortgage, then you'd need to pay mortgage insurance on your mortgage payments. This is designed to protect the lender in case you default on your payments. FHA loans are a great way of getting a loan, but those payments do add up.
A VA loan, on the other hand, doesn't require you to pay insurance at all on your premiums. This saves you a significant chunk of cash and makes your payments a good bit lower. This is good news to any veteran who's looking to save money as they look for a new home.
Reduced Interest Rates
A VA loan is backed in part by the Veterans Affairs agency, so lenders are inclined to offer competitive interest rates on their loans. For example, a lender may offer you up to 1% less interest than you'd get on a regular loan. On a 30 year $250,000 loan, you could save up to $40,00 if you're paying 4% interest rather than 4.75%.
This is another benefit that saves you another large chunk of cash, something that most veterans are looking to do. It's great to have when you're looking to put down roots or start a family in a new area.
Credit Expectations Are Lowered
As mentioned earlier, it's difficult for any veteran or active service person to build up credit, as they're always on the move. When it comes to buying a home, this means that it can be difficult to get a loan with decent terms, if you can get one at all. With a VA loan though, the credit requirements are relaxed. You can get approved for a loan with a much lower credit rating, making a new home within your grasp.
Typically, credit requirements go as low as 620. If you have a score that's around this mark, you'll be able to find a VA loan that's right for you. Lenders are much more likely to be comfortable offering a loan to you, as the loan itself is backed by the VA.
Limits On Closing Costs
Anyone who's bought a house will know that there are closing costs involved in finishing up a sale. These can add up, and you can find yourself dealing with more costs than you thought you would. There are plenty of veterans who have avoided buying a home for this very reason.
However, if you buy a home with a VA loan, there are actually caps on closing costs. This is great for you, as you know exactly what you need to budget when you're in the process of buying. If you want to take advantage of this, ask what the caps are when you're shopping around for a loan.
Buying A Home With A VA Loan
If you're convinced that a VA loan is the way to go, then it's time to talk to us at Nationwide Home Loans. We're the experts in getting you the right loan, and getting you into your dream home. Come to us and we'll help you find the right loan, at the right rate.
If you're a veteran and you're looking for a new home, a VA loan could be just the thing to help you out. Start shopping around now, and look for a loan that will finally help you move into your dream home.