The VA home loan program is one of the best benefits available to veterans. It offers a host of advantages, from no down payment to low interest rates. If you’re a veteran and want to purchase your own home, now is a great time to take advantage of these incredible benefits. Here are some things you should know about VA loans before you start the homebuying process.
1. You can get a VA loan with no down payment. That’s right – you can finance 100% of your home’s purchase price with a VA loan. This is an incredible benefit, especially compared to other loan programs that require a down payment of 3-5%.
2. VA loans offer low interest rates. Because the VA guarantees a portion of the loan, lenders are willing to offer lower interest rates to veterans. This can save you thousands of dollars over the life of your loan.
3. There is no monthly mortgage insurance on VA loans. With other loan programs, you’re required to pay monthly mortgage insurance if you don’t have 20% equity in your home. With a VA loan, there is no monthly mortgage insurance, which can save you hundreds of dollars each month.
4. VA loans are available for both purchase and refinance. If you’re looking to purchase a home, a VA loan can be a great option. But if you already have a home and you’re looking to lower your interest rate or monthly payment, a VA loan can also be used for refinancing.
5. There are no prepayment penalties on VA loans. If you decide to sell your home or refinance your loan before the term is up, you won’t be charged a penalty like you would with some other loans.
If you’re a veteran, these are just a few of the benefits that make VA loans an incredible option when you’re ready to buy a home. Don’t forget to take advantage of all the benefits you’ve earned through your service. Thank you for your sacrifice.