Serving in the military is a great honor, but it can also come with a lot of financial hurdles – like trying to save enough for a down payment on a house. Luckily, the United States Department of Veteran Affairs has been aiding veterans for more than 79 years with their home loan program. In this blog post, we’ll go over the many advantages of VA home loans and what you need to know before you buy your own home.
Options for No Down Payment
One of the most significant advantages of VA home loans is that qualified borrowers can put no money down when they purchase a home. This can be a considerable weight off your shoulders, especially if you’re trying to save up for a home. With a VA loan, you may be able to purchase your dream home without having to put down a large down payment.
Limited Closing Costs
When you’re in the process of purchasing a home, closing costs can add up quickly. The good news is that there are limits on the types of closing costs you’ll need to pay when you qualify for a VA loan. This means you’ll have more money in your pocket when it comes time to seal the deal.
No PMI Required
Private Mortgage Insurance is often necessary when you put less than 20% down on a home purchase. However, VA loans don’t require PMI, which can end up saving you hundreds of dollars per month on housing costs. That’s more money you can put towards other expenses or savings.
Qualifying for a VA Loan
To qualify for a VA loan, you must meet specific criteria set by the Department of Veteran Affairs. Generally speaking, you need to have served at least 90 days on active duty during wartime or 181 days of continuous active duty during peacetime. However, exceptions can be made for those who served during more recent conflicts.
Finding a Lender
Once you’ve determined that you qualify for a VA loan, finding a reputable lender is essential. While many banks and loan companies are VA-approved lenders, it’s important to do your research and compare rates and fees before selecting a lender. Make sure you feel comfortable with your lender and understand all the terms of your loan.
VA home loans have helped millions of veterans achieve their dream of homeownership, and they can do the same for you. With no down payment required, limited closing costs, and no need for PMI, a VA loan can be a practical option for qualified borrowers. Make sure to do your research, understand the qualifying criteria, and select a reputable lender before making your move. We thank you for your service and wish you a happy homebuying journey.