Obtaining a home loan through a conventional provider is associated with high repayments and interest rates. The VA loan has been created to guarantee applicants a portion of access to finances. For this reason, the interest rates can be up to 1% lower than alternative loans. Most risks associated with a VA Loan will fall on the lender and not the VA borrower equating to additional protections.
Veterans can qualify for a VA home loan without requiring any type of down payment. This contributes to significant savings when looking to finance property. Military personnel can take advantage of the incredible benefit of financial savings not having to place a down payment.
A VA approved lender may use an average or minimum credit score to determine overall qualifying finances for home loans. According to the Department of Veterans Affairs, the presentation of loans does not involve the establishment of credit scores. Lenders will typically look at these scores to assess the qualifying sums and inherent risk associated with a VA buyer. It is theoretically possible to qualify without an established credit score.
Active duty and veterans wanting to use their VA loan benefits need not worry about paying Private Mortgage Insurance (PMI). Since VA loans are backed by the government, VA borrowers can forgo this expense and say good riddance to PMI! This equates to significantly lower monthly mortgage payment than other non-VA loan financing.
Lenders will restrict the charges associated with a home loan and the closing costs. Although some costs must be covered by the party, it is certainly more affordable and provides additional savings than having to include these expenses.
This escape clause, which is specific to the VA home loan and was put in place by the Department of Veterans Affairs to protect the Veteran borrower in the instance where the appraisal comes back less than the asking price.
This clause allows a VA borrower to get out of a purchase contract without the risk of losing your earnest money deposit. It only applies in one situation but provides vital protection you don’t want to be without.
This means you won’t be charged a fee if you pay off your loan early.
Saving you $$$.
The VA can help struggling borrowers facing potential foreclosure. In certain cases, agency loan technicians can negotiate with lenders on behalf of VA borrowers who are having trouble making mortgage payments.
When looking for your new home, Jay Johnson and the Price One Team can and will provide the expertise necessary to ensure your home buying experience is as stress-free and rewarding as possible. As military and veteran real estate education specialists, we deliver an all-inclusive approach ranging from ideal communities to assisting you with obtaining no nonsense VA home loan financing.
Price One Realty is your trusted source for expert real estate service offering a complete financial assessment and pre-VA Home Loan education. We believe in making the process of finding homes for military members and veterans simple, affordable and enjoyable.