Top 10 VA Home Loan Benefits for 2016
Top 10 VA Loan Benefits for your 2016 Home Resolutions
Have you taken advantage of your hard-earned, home loan benefits?
VA Home Loans come with significant benefits for military veterans and active-duty military members that allow them to obtain homeownership. The VA Home Loan Program has become one of the most popular home loan programs in the country due to these signature benefits. As the new year approaches and home “resolutions” are beginning to form, we are featuring some of the top advantages of VA Home Loans for your 2016 home purchase or refinance.
Let’s explore some of top benefits of VA Home Loans …
1. Competitive Interest Rates
Interest Rates for VA Home Loans are typically .5% less than a conventional loan, so your VA advantage with a VA Home Loan will usually result in a lower monthly payment. Financial institutions carry less risk and can offer lower interest rates because the VA backs each VA loan with a guaranty. Lower interest rates account for more savings over time and a better deal on your new home.
2. No Down Payment
A great benefit for US active military members and veterans is the no down payment required for a VA Home Loan. Qualified borrowers can finance 100 percent of the home’s value without putting any money down. This benefit can amount up to $90,000 in savings at closing for a $450,000 loan. For active military members and veterans alike, this benefit is too great a deal to not take advantage of. You can also take advantage of this with refinance cash out loan up to 100% of your value, and use the cash for anything you may need.
3. No Private Mortgage Insurance
Private Mortgage Insurance (PMI) is an insurance that protects lenders in case of a borrower default. It does not benefit the borrower at all as it is set in place only for protection of the banks, yet costs borrowers thousands a year on their monthly payments. VA does have a funding fee for some Veterans but does not have a monthly PMI payment.
4. VA Loans can be used time and time again.
Qualified veterans and active duty military members can use their VA home loan benefits time and time again. The VA also makes it possible for you to use more than one active VA loan at the same time. Once you’ve earned your benefits, it’s yours for life.
5. VA Loans can be used for home refinance purposes.
VA home loans aren’t only used for purchasing a home. You can use your VA home loan benefits to lower your rate, repair or improve an existing home (refinance), to purchase a lot, or pay off debt. In most cases, you can use the money for anything you desire, and you can go up to 100% of the value of your home.
6. VA Home Loans are cheaper than most other types of home loans.
The VA Home loan has fewer fees and no down payments, making the VA Loan cheaper than most.
Funding Fee: VA Loans, like all government loans (USDA, FHA) have a funding fee added to some of the loan amounts. This funding fee ranges from 1.50% to 3.3% for most on the purchase price. However, depending on your discharge or first-time use, this could be as low as 0%! USDA charges 2.75% and FHA charges 1.75%. Even conventional if you want to buy out of PMI has an upfront fee.
Monthly Mortgage Insurance: Both USDA and FHA loans have monthly mortgage insurance on top of the upfront fees added to the loan, whereas VA loans do not. Conventional loans do not have an upfront fee, but if you go over 80%, they do have monthly mortgage insurance so in most cases you will find VA Loans to be cheaper than conventional loans as well.
No Down Payment: in addition, there is not a down payment on a VA loan, whereas FHA and conventional loans do require at least 3.5% or more.
7. Not-as-strict Underwriting Guidelines
VA is the most “common sense” underwriting left in the market. They listen to the story behind past blemishes and allow individuals with a past, unforeseen incident that may have affected their finances to obtain a home loan. They also allow for lower FICO scores than both USDA and Conventional, and have a shorter waiting period after Bankruptcy, Foreclosure, Deed in lieu or repossession than most other loan programs.
8. Energy Efficient Improvements
With a VA Home Loan, you also have the opportunity to obtain energy efficient improvements, such as solar heating.
9. Veteran’s Mortgage Life Insurance (VMLI)
According to the VA, Veteran’s Mortgage Insurance is mortgage protection insurance that can help a disabled Veteran’s family by paying off the home mortgage in the event of the Veteran’s death. This benefit is available to Veterans with severe service-connected disabilities who received VA assistance in building, remodeling or purchasing an adapted home, have a title on the home and have a mortgage on the home.
10. Additional VA Benefits
The VA can determine disabilities to be related to your military service, and it can lead to monthly non-taxable compensation, enrollment in the VA health care system, hiring preference for federal employment and more.
Active Military Members and Military Veterans can receive VA Loan assistance from VA Loan specialists, who can guide them through the process and help them achieve their dream home. At VALoanSpot.com, our loan specialists will work with you hand-in-hand to make sure you receive every aspect of your VA Home Loan benefits, an additional benefit for veterans and military members alike. Contact us today, and take advantage of your home loan benefits today!
Do you have more questions about the VA Home Loan Process, or are you ready to start the process?
Talk with a VALoanSpot Loan Specialist today at 800.537.2050, or fill out our Get A Quote form and a specialist will contact you shortly.