One great thing that our nation has done for those who have served is to create a veterans home loan program. This program assists those who protect our country. Veterans can face a tough road while trying to receive a mortgage through conventional means. Not all veterans are aware of the benefits of obtaining a loan through a veterans loan program. Data collected in 2015 shows that 134,808 veterans received home loans to help them purchase their first home. Many veterans are unable to meet the credit and financial requirements needed for a home purchase in these modern times. A veterans home loan allows those who fight for our country to receive assistance when purchasing a home. In this post, you will learn four benefits of the veterans home loan program.
- Lower Rate than Conventional Loans
Research shows that veterans mortgage rates are about 50 points lower than what is seen with traditional loans. The veterans home loan program allows our vets to deal with much lower rates. Having access to lower rates helps to ensure you spend less money paying back a loan over time. The VA Home Loan has assisted over 22 million veterans with owning a home. Typical veterans mortgage rates are much lower than those for other citizens. Working with low rates helps veterans to ensure they receive a home suited to their needs.
- Not Having to Save for a Large Down Payment
One of the burdens that people struggle with while trying to obtain a home is the down payment. Many financial institutions require a down payment to get a home. In many cases, an average down payment can be as high as 10%. People in the military earn an income in a similar manner to civilians. However, a veteran is often away from home which doesn’t give them the same access to credit a civilian has. It can be difficult for a veteran to normally borrow or raise the money needed to obtain a home. Obtaining a veterans home loan ensures you don’t have to worry about a large down payment.
- Lowered Minimum Credit Requirements
A veteran home loan program helps those who have served their country not have to deal with traditional borrowing requirements. One common worry that home buyers have is meeting minimum credit requirements. In some cases, a buyer may have credit that is low due to bad purchasing habits. A buyer can find that they don’t meet the minimum credit requirements because they don’t have enough lines of credit open. Enrollment in a veteran home loan allows those who have served this country to receive much more relaxed credit requirements. It is very tough for a veteran to have what is considered perfect credit by current civilian standards.
- Not Having to Purchase Monthly Insurance for Mortgage
Many homeowners learn quickly that there are other monthly costs associated with owning a home. One of the additional monthly expense many homeowners have is for mortgage insurance. Rates will vary for what these monthly payments are. However, it is estimated that someone with a $250,000 mortgage would end up paying about $200 a month in insurance costs. People receiving veterans loans do not have to worry about paying for mortgage insurance. Many veterans enjoy being able to save money from costly additional monthly expenses.
In summary, there are many benefits associated with a veterans home loan. Veterans often find that they have a tough time obtaining a traditional loan. Veterans are often in roles that place them away from their home countries. Being in a foreign country makes it hard to obtain and grow traditional lines of credit. A veterans home loan offers lower minimal credit requirements for those who have served our country. Owning a home through a veterans home loan means not having to save for a down payment. You will also save money by never having to worry about monthly mortgage insurance payments. A veterans home loan is helping proud men and women of the military obtain the home they deserve.