The U.S. Department of Veterans Affairs (VA) helps Servicemembers including Reserve and National Guard members, Veterans, and their eligible surviving spouses to become homeowners by providing a home loan guaranty benefit. Although the VA does not lend money, it does guarantee a portion of the mortgage allowing private lenders, such as banks and mortgage companies to offer more favorable terms exclusively for those who are eligible and want to buy a home as their primary residence or to refinance their existing mortgage.
These favorable terms include many unique benefits including reduced or no down payment loan requirements, low interest rates, no private mortgage insurance (PMI) expense, and limited closing costs (which can be paid by the seller), reducing both the upfront out-of-pocket expenses and the cost of monthly mortgage payments for those who are eligible. In fact, many states offer property tax reductions to certain Veterans, further increasing home affordability. Additionally, these VA advantages can be used multiple times as lifetime benefits.
Moreover, VA mortgages may sometimes be assumable to the next buyer even if the buyer is non-military, as long as they meet income and credit requirements. Assumption is the process of having another person take over the mortgage while keeping the original repayment terms. Offering this feature may make a home attractive to new buyers, making the home quicker or easier to resell in the future.
VA loans are available for other purposes, including cash out refinance loans to take cash out of a home’s equity for items like paying off debt, funding school, or making home improvements. They also offer interest rate reduction refinance loans to help obtain a lower interest rate by refinancing an existing VA loan.
Although obtaining a VA loan does have eligibility requirements and the borrower must qualify with acceptable credit and sufficient income, the outstanding benefits and affordability these mortgages offer are undeniable.
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If you are interested in learning more about VA loans, we are just one phone call, text or email away from answering any questions you have. Please visit https://1stoplending.net for more.