What Are The Benefits of VA Loan?

07 Apr What Are The Benefits of VA Loan?

There are countless benefits of VA loans. They are a perfect option to use VA’s benefits for eligible currently serving military members, certain surviving spouses of military members who have died on active duty (or as a result of active duty) and veterans. 

Today we will discuss a few attractive benefits of VA Loans.

Zero Down Payment VA Home Loans

VA mortgages demand no down payment in most cases. When it comes to home loans, Zero down is a huge advantage, mainly for lower-ranking junior enlisted personnel.

No VA Loan Funding Fee For Qualifying Service Members

Borrowers currently receiving or eligible to receive VA service-related disability compensation may be eligible for an exemption from the funding fee.

As of January 1, 2020, Purple Heart receivers who are on active duty also qualify for a VA loan funding fee waiver if they are able to submit proof of the award before loan closing time.

Borrowers Benefit From Making A Down Payment On A VA Mortgage

If you are applying for a VA loan and are also willing to make a down payment, the down payment will lower the amount of that fee.

You will be eligible for a lower VA loan funding fee by paying 5% or 10% down. If you choose to make a down payment voluntarily, it can lower the overall cost of your loan over time.

Check Your Veterans Loan Eligibility

No VA Loan Limits

Starting in 2020, the VA announced the removal of the VA loan limit for VA-backed mortgages. This allows VA borrowers more buying power, including the option to apply for a so-called Jumbo Loan, which tops the Fannie/Freddie conforming limit for that housing market.

As per the VA official site, those with full VA loan entitlement, “may now obtain no-down-payment VA-guaranteed home loans in all areas of the country, regardless of housing prices”.

Learn how to apply for VA Home Loan, if you are a Veteran.