It has always been the dream of most people to buy a home once they get a job. But many have not been able to achieve this since home buying needs lots of cash. So, you have to pile cash to build and this may take time. However, the VA loan program is such a relief for military families. This is because they can now own home without any money thanks to the program.
What exactly is the VA Home Loan Program?
The United States Department of Veterans Affairs guarantees VA loans to eligible militaries and their spouses. A government agency backs this loan making it easier for lenders to offer them. Given that you can get this loan without a down payment and the less risk linked to these loans, then they are worth trying. You might be asking, is there any other VA home loan benefit? If so, keep reading since we will cover this into detail.
Who are eligible for VA Home Loans?
To get this type of loan, you have to meet all the requirements. The U.S government dictates that you must have an active-duty military. Also, you can be an honorably discharged veteran. Some military spouses are also eligible for these loans. Other requirements are a 3 months service during wartime plus 181 days of active service with peace in the country. Also, you must have a record of over 6 years in Selective Reserve or National Guard.
How about if I lost my loved one in the line of duty? Am I eligible for a VA home loan? This is one of the frequently asked questions. Note that it’s possible to access VA loans in such a case. All you have to do is follow the right procedure.
No doubt, VA loan is a government-initiated program but the government does not in any way give direct loans to military officers/veterans. Private lenders offer these loans including Resource Financial Services Inc. However,
Why Apply For a VA Home Loan?
There are many benefits linked to VA home benefits. Let’s focus on each of them;
$0 down mortgage; provided you meet the set requirements, no down payment is needed. This is one of the major advantages of these loans. This is unlike the conventional loans that require you to make a down payment of 5%. Also, the FHA loans down payment are 3.5%.
Low-interest rates; loans with higher interest rates can be a pain on the neck. However, for the VA loans, the average interest rate is relatively low hence surpassing other loan types. VA backs these loans with a guaranty. As a result, the risk involved is less.
Does not attract prepayment penalties; As a VA buyer, you are free to clear your loan in advance without being penalized.
Closing cost benefits; As usual, mortgages have closing costs and fees. However, VA has set limits on the charges applied to veterans. The best part is that closing costs can be negotiated
Streamline refinancing program; if you already have a VA loan, it’s possible to refinance to a low-interest rate. Hence, your monthly VA loan payment is lowered. Note that the process I simple and fast. In other cases, you won’t need an appraisal or Certificate of Eligibility. Also, additional expenses are low.
There is a fulfillment that comes with being a homeowner, don`t deny yourself the chance to buy a home especially if you are eligible for VA loans.