The VA loan program has some great benefits that can help Veterans purchase their dream home.
1. No money down required. VA loans allow for 100% financing, which means no cash out of pocket for the down payment. Loan programs normally require up to 3-5% down payment. With a VA loan, so long as the purchase price doesn’t exceed the appraised value of the home, no down payment is required.
2. No private mortgage insurance (PMI) required. With traditional loans, if you require financing for more than 80 percent of a home’s appraised value, you’ll most likely be required to pay PMI monthly, which protects the lender if you default on the loan. The VA loan does not require PMI which means lower monthly payments!
3. Reduced closing costs. Veterans can save money by paying reduced closing costs by using the VA Loan. This can help the Veterans save hundreds and in some cases thousands of dollars.
4. Lower interest rates. VA loans are guaranteed by the VA and lenders can offer favorable loan terms in comparison to conventional loans. This can mean lower interest rates and lower monthly loan payments for the Veteran.
5. Potentially lower minimum credit score. The VA loan allows lower credit scores for Veterans in contrast to conventional lenders. This provides more Veterans to qualify and purchase homes using their VA eligibility.
If you have any questions on the VA loan program, please feel free to contact me.
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