Benefits of a VA Home Loan
VA home loans still remain to be among the best loan options you can find in the market today perfect for both veterans and active military personnel.
Take a look at the top benefits of VA home loans that you can enjoy when you apply for one:
You Don’t Need Mortgage Insurance
Lenders usually require borrowers to pay for mortgage insurance for down payment that is lower than 20%. This insurance is called PMI or private mortgage insurance for conventional loans and MIP or mortgage insurance premium for FHA loans that keep the lenders protected if the borrower defaults on the loan.
With VA home loans, you don’t need any mortgage insurance or even down payment. This is why VA backed by mortgage is affordable upfront and even over time.
Down Payment is Not Required
In many home loan programs, one common requirement is for you to have a small amount of down payment so you can purchase the house that you like. But, this is not something you have to worry about when applying for a VA home loan.
Instead of the need for an upfront payment of 5%, 10%, 20% or even more of the total purchase price of the home, VA home loans can finance as much as 100% of the purchase price. VA home loans are the real no down payment opportunity you can get.
Government Guarantee Back Up VA Home Loans
There is one good reason why VA home loans have very favorable terms. A part of the loan is guaranteed by the federal government that it will repay to the lender in the event that they cannot make their monthly payments for any reason. The guarantee from the government enables and encourages lenders to provide VA home loans with notably attractive terms to those borrowers who need or want them.
Prepayment Penalty are Not Allowed in VA Home Loans
A VA home loan will not put a restriction on your right to sell the house if you ever decide that you don’t want to own it anymore. There is also no early exit fee or prepayment penalty within the time frame you choose to sell the home.
There are also no restrictions on how you will refinance your VA home loan. An existing VA home loan can be refinanced to another VA home loan via the IRRRL or Interest Rate Reduction Refinance Loan program of the agency or you can also opt for a non-VA home loan any time you want.
Choose from the Best Rates for VA Home Loans
VA home loans don’t come from the VA nor does the VA fund them. The VA is also not the one who sets the mortgage rates for VA home loans. Instead, US banks, loans and savings institutions, mortgage lenders and credit unions are the ones that offer these loans and each of them have their own unique set of fees and rates for VA home loans.
If you need assistance with your VA home loan application or you want to know more about its benefits, CambridgeHomeLoan.com is the best resource you can turn to.
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