As many people know, buying a home is sometimes difficult. This isn’t done intentionally, lenders often have these requirements in place to protect themselves. Regardless, it’s often more difficult for those in the military to obtain a conventional mortgage. Thankfully, there is a program put in place to help those who have and are serving their country. In this post, you’ll learn four ways VA home loans benefit both veterans and active military members.
- More Lenient Credit Restrictions
Buyers looking to own a home must meet certain credit requirements. In many cases, this can make it hard for many to become first time home buyers. Making matters worse, those serving their countries are unable to build credit in a similar manner to civilians. Therefore, VA home loan credit requirements are far less restrictive than those needed to obtain conventional mortgages.
- Not Having to Make a Down Payment
One of the most difficult things for first time home buyers is coming up with a down payment. Statistics gathered from March 2016 found that the average home in the United States costs $186,000. Considering that, it can take anyone quite a while to come up with a sizeable down payment for a home. Fortunately, VA home loans don’t require veterans or active duty military to make a down payment on a home. This ensures that veterans and active duty military members don’t have to spend long amounts of time coming up with a down payment.
- Low Interest Rates
Statistics show that 32% of people needing to purchase new homes are doing this for the first time. In most cases, these individuals will be confused about matters regarding interest rates and mortgage planning. Fortunately, those able to utilize the VA home loan program won’t have to worry about high interest rates. Since parts of this loan are guaranteed by the Department of Veterans Affairs, lenders typically receive lower interest.
- Ability to Utilize This Program Multiple Times
You might assume that this program is only able to be used one time. Fortunately, this isn’t true. You’ll find that those qualifying for the VA home loan program can receive these benefits for multiple home purchases. You’ll find that those looking for VA home loans rarely lose their eligibility.
In closing, there are several important benefits of obtaining a VA home loan. This loan was created to help veterans and active duty military members own a home of their own. This type of loan is also incredibly beneficial for first time home buyers. Data obtained from the 2015 National Association of Realtors Report found that there was only a median distance of 14 miles between where someone lived and the location of their new home. If you’re looking for a place of your own that’s close to home, consider obtaining a VA loan.