25 Feb 8 Things You Must Know About VA Loans
VA Loans: What they can help you get
The VA or Veterans Administration sponsors mortgage loans, which are amongst the most versatile tools that veterans have at their disposal. However, that is not what every veteran out there understands. These loans cannot only help you become the owner of your home but also help you keep a home that you already own. Realizing the full potential of VA loans is essential to get your due for all the effort and time that you put in, and that is the intent of this article.
VA Home Loans do not need you to make any down payments!
You may be putting off buying your own house because you do not have sufficient down payment saved up. This is where a VA loan can help you buy a house with little or even no up-front payment. All you need is an okay credit and a reliable income source for future loan repayments.
No PMI needed
PMI or Private Mortgage Insurance is for the lender’s protection. With the government giving a guarantee on VA loans, this insurance is no longer mandatory. This can save you quite a bit of money every month!
You do not miss ‘shopping’ for the best rate of interest
A VA loan is not granted to you by the Veterans Affairs- it comes from a VA approved lender. This makes it possible for you to compare amongst them to find the terms that best suit you and your finances.
Save as you refinance
The VA also has an interest rate reduction mechanism known as the IRRRL to help you by streamlining the path of refinancing a VA loan to another one. Thus, in case you have used up a VA loan while buying your house, you will still be able to benefit from it if the interest rate decreases anytime in the future.
Use these loans for accessing home equity
For those who have been paying their mortgages for a reasonable amount of time, having built equity in their homes, cash-out refinancing can prove to be a cheaper way of getting a loan against it for repairs and remodeling. Under the VA’s program for the same, you can get over 100% of your house’s value and even refinance a loan that is not VA through it.
Just because it is VA-guaranteed does not mean it is only for veterans
These loans are not only meant for the veterans of the wars fought by the USA over the years. Along with the right qualifications, even active members in service, as well as those from the Reserves and National Guard, are eligible for VA loans. Surviving spouses of those veterans who died in their service or are MIA, PoW or disabled in service before their death can also get it.
These are just some of the benefits that come with a VA-backed loan. For a full range of advantages, visit the VA website or contact their service helpline.