There is a sigh of relief for veterans who’ve diligently serve their country with great honor. With a VA loan, retired and active service members can now secure home mortgages without a good credit record, mortgage insurance or down payments. This loan is issued by any accredited lenders and the Veterans Affairs Department, commonly known as VA act as a guarantor of the loan. Not only has the VA home loans assisted more than 22 million veterans to secure homeownership, but also it has helped many refinance their existing homes, reducing their monthly charges in return.
While there are several loan options available, it’s important that you not only find a budget-friendly mortgage, but one that also allows you to own a dream house for you and your family. As a veteran, you have more option than other people and that is a VA home loan. Certainly, the benefits you’ll get from this kind of mortgage are unlimited. From competitive vet home loan rates, flexible application process and payment options, this is something you could work with without feeling a pinch.
Chances are that you will most likely choose a VA loan over other plans, but as you do that, it’s crucial you assess all the factors for and against this type of mortgage. Getting to know the pros and cons a VA loan and all the factors surrounding will enable you to make an informed decision that best fits your needs. So, if you are eligible for a VA home loan but still unsure, here’s are important reasons why you should go for it after all.
Low Vet Home Loan Rates
When you apply for a VA loan, your credit record isn’t considered as part of the loan requirements hence you are expected to part with very low-interest rates. Generally, credit score is a major consideration when applying for a loan and those people with bad record often pay high rates. But with a VA home loan, you get to enjoy the same benefits enjoyed by someone with excellent credit. In fact, the current VA mortgage rates are as low as 50 basis points below the normal conventional mortgage loans. However, veteran home loan rates will also differ across service members. For instance, National Guards and Reservists pay a fraction high in fees as compared to the amount active-duty members pay. Other than that, if you are using your VA loan plan for the second time, you are expected to pay at least 3.3% of your loan.
Flexible Qualification Standards
The idea behind VA loans is to ease the financial burdens often experienced by veteran and their families. For this reason, VA loan application and qualification requirements have been made easy so to that people can lead a happy life. Normally, conventional loans require insurance as one of their requirements, but the good thing about VA loans is that they do not need mortgage insurance whatsoever. In fact, they allow 100% refinancing of the home’s value. Not forgetting that vet home loan rates are also pretty low, this has made home ownership much flexible and faster.
Another advantage of VA loans is that there is no minimum income threshold require for you to qualify for the program, neither does it have a minimum credit score.
Low or No Down Payment
Something unique about VA home loan program is their flexibility or no down payment structure. This means that you don’t have to spend your life saving up for down payment and the little amount you have can be channeled to do other things. This feature makes VA loans very attractive to many.
So, do you still have doubts about VA mortgage loan programs? I’m sure there is none after digesting all these benefits. Do not let your poor credit score hinder you from applying for this loan, and also, don’t fear the high-interest rates often associated with conventional loans, this program offers you the most convenient Vet home loan rates in the market.
