The U.S. Department of Veterans Affairs (VA) supports VA home loans- from military service members to eligible spouses and veterans, they cover them all!
Certainly, the VA loan benefits are extensive for borrowers. There is 100% financing and limited closing costs that make it a popular choice among veterans. The down payment for a VA loan is 0%. This implies; it allows you to finance the entire purchase price of a home. Pierpoint is one of many authorized mortgage companies that offer VA loans specifically to save you money in the home-buying process. It is one of the top mortgage companies offering unique long-term home financing solutions for veterans and active duty service members.
So, if you’re an active-duty military member or a veteran, you can use a VA home loan to refinance an existing mortgage or purchase a new home. Here we are with the major benefits of choosing a VA loan for veterans. So, without further ado, let’s get started!
What is a VA Loan?
A VA loan is basically a home loan given by private lenders. If you are presently in the military or a veteran, you may be eligible for a VA loan. It facilitates you to apply for a low-cost mortgage when purchasing or refinancing a home, even when your credit isn’t ideal. VA loans are also used by a large number of qualified borrowers. The VA secured approximately 256,000 home loans worth more than $83 billion in the first half of 2022.
Perks of acquiring a VA loan for Veterans
There are numerous advantages to VA loans; here are a few to consider:
Build up your credit
VA loans are a great way to build up your credit. By making payments on time, you can improve your credit score and qualify for better terms in the future. So, if you’re thinking of buying a home, a VA loan is an ideal choice. It lets you enjoy the benefits of home ownership while improving your credit also.
Because the lenders report your payments to the credit bureaus, timely payments can help raise it. The best part- you can even refinance your VA loan into a lower-interest-rate loan, which can save you money each month.
Get started without any upfront investment
While typical mortgages necessitate a down payment of 3 percent or more of the purchase price, VA loans enable eligible borrowers to buy a house without any money down. It makes a big difference for many would-be homeowners.
In addition, this allows veterans and service members to buy homes without spending years saving for a lump-sum payment. Considerably, it is a considerable advantage.
No restrictions on home loans
Borrowers who are eligible for full entitlement won’t have a limit on their home loan set by the VA. Simply, it means that the amount will only be restricted by the lender you choose and how much they think you can afford.
VA Loans are extremely popular due to the lack of restrictions on the loan. Most veterans who are looking to purchase a home prefer to use a VA Loan because they are able to get a loan with no money down and no PMI (Private Mortgage Insurance).
As we have mentioned above, VA loans have some of the lowest interest rates available, so, it becomes an extremely attractive option for those looking to finance a home purchase.
Favorable Interest Rates
A further major way the VA loan program helps Veterans save money is by offering the lowest market average fixed rates.
ICE Mortgage Technology’s data reports that, for the last six years, VA loans have had the lowest average 30-year fixed rate on the market.
Typically, VA rates of interest are 0.5 to 1% less expensive than standard interest rates. Veterans can save cash each month and over the course of their loan.
Easy refinancing options
There is a VA cash-out refinance option available for refinancing. You may choose to use it to finance up to 90% of your home value or a Interest Rate Reduction Refinance Loan (IRRRL).
These may result in a reduction in your rate with a quick procedure that excludes an appraisal. Every refinancing alternative could boost the overall value of a VA loan.
Frequently Asked Questions
1. Why are VA loans a great way to finance your home?
With no down payment necessary, private lenders like us provide VA loans, which are partially insured or protected by the Department of Veterans Affairs (VA). VA loans can be used to purchase or refinance a home or consolidate debt.
2. Can VA loans be availed by anyone?
No! VA loans can only be availed by veterans, active-duty members, or spouses of the surviving. People who are a part of the U.S. armed forces, Commissioned Corps of the National Oceanic Atmospheric Administration, or the Commissioned Corps of the Public Health Services can take the advantage of getting a VA loan.
Is a VA loan the right option?
VA loans are a desirable home loan option for qualified service members, veterans, and surviving spouses. They can help you cut back on both the short- and long-term costs of home ownership. You must satisfy all qualifying standards and purchase a home that you intend to use as your main residence. Additionally, the house you purchase must be in decent condition.
However, if you fulfill the requirements, the advantages of a VA loan are quite appealing and can help you save money both at the time of closing and throughout the loan’s term.
If you are not sure if you can qualify for a VA loan or have any questions related to it, our experts at Pierpoint Mortgage are here to assist you! We are committed to providing satisfying services to our customers and helping them choose the best loan as per their needs. You can reach us through our website or by contacting us directly. We will be happy to answer any questions you have and help you make the best decision for your needs!
Got questions, comments, or feedback? Contact us anytime and we’ll get back to you as soon as possible.