IS A VA HOME LOAN RIGHT FOR YOU?

A VA home loan can offer eligible borrowers numerous advantages that aren’t usually offered with other conventional home mortgage loans.

HOW YOU CAN BENEFIT FROM A VA HOME LOAN?

• No down payment is required for eligible home purchases to qualified candidates
• Some closing costs are limited by the VA
• There is no mandatory private mortgage insurance requirement
• There is no penalty for an early repayment of a VA home loan
• Mortgage counseling available for free to help determine alternatives to foreclosure if a borrower needs assistance

With the possibility of no down payment, a unique benefit of the VA home loan program is that it can still benefit borrowers who haven’t had opportunities to save a large amount of money. Most VA home loan purchases are actually made this way, without a down payment required. This advantage enables some eligible borrowers to purchase homes they would otherwise not be able to afford when using another type of home mortgage programs. It is helpful to review and understand the VA home loan pre-qualification process to help get a good idea of your budget before you decide to shop for a new home.

Most non-VA home loans require a costly monthly mortgage insurance policy for borrowers who don’t have at least 20% equity or greater invested yet into their homes. A government-backed mortgage never requires a borrower to pay private mortgage insurance premiums (PMI). Many veterans are spared from additional costs as a result of these VA loan benefits.

ELIGIBILITY REQUIREMENTS FOR A VA HOME LOAN APPLY

Borrowers need to know that not everyone is able to get a VA home loan and that the eligibility requirements for a VA home loan application still need to be met. If you are currently serving in the armed forces, then you might be eligible after completing 90 consecutive days of active duty within any wartime or peacetime period. If you do not meet the VA’s active duty minimum service requirements, regular military members will need to serve two consecutive years, while Reservists and Guard members will need to serve six years.

To learn more about a VA Loan, contact USAFC Realty.

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