Speaking of VA Loans Benefit, or those who are eligible and qualified, the VA loan is the best mortgage plan you could ever think of. Designed by the US Department of Veteran Affairs, the VA loan is created to assist active duty military individuals, veterans, and some other groups in becoming homeowners at a very affordable amount.
The VA loans stand out from the rest based on the fact that no down payment is required nor mortgage insurance and the qualification rakes are lenient and can be easily met with. In this post, we will be discussing what you need to know about VA loans and their benefits.
VA Loans Benefit | Benefits of VA Loans
VA loans have a lot of benefits, and here, we will be discussing some of the benefits of VA loans. Below are the benefits of VA loans.
No down payment
Most home loan programs require you to make a minimum down payment but a VA loan doesn’t require any. Instead of paying 5, 10, or even 50 percent of the cost of the home up front, with a VA loan you can finance about 100% of the cost.
No mortgage insurance
On a normal basis, you are required to pay for mortgage insurance if you make a down payment that is not up to 20%.
It has the backing of the government
VA loans don’t just have favorable terms for no reason. These loans are guaranteed by the federal government, meaning that the lenders are assured that a portion of the money lent will be repaid by the government if one is unable to complete the monthly payments for one reason or the other.
There is no pre-payment penalty
A VA loan won’t stop you from selling the property even when you have not completed the loan term. There is no prepayment penalty and there is no early exit too, no matter the time you decide to sell the property, not just that alone but there is no rule stopping you from refinancing your loan.
VA mortgages come in different types
VA loans can be fixed or flexible, the loan can be sued to buy a newly built house, a condo, a duplex, a manufactured home, and many other types of properties.
Lenient eligibility criteria
Unlike many other mortgage types that require several documentation, acceptable credit history. And a reasonable income to make monthly payments, VA loan requirements. And eligibility criteria are flexible and this is made so by the VA loan guarantee.
Lower closing rates
VA limits the closing rates lenders charge applicants of VA loans. This is another feature that makes VA loans more affordable. Money saved can be used to furnish the home or cover the cost of moving.
Low loan rates
VA loan rates are low compared to others, in fact, VA loans can be said to be one of the lowest risk mortgages. The safety of VA loans allows banks to lend to vets at very low rates.