You’ve joined the service. You’ve served your country. You left the service. Now what? It’s time to buy a home and start the next chapter of your life, and there are resources out there to help you do that. VA loans are available to veterans looking to buy a home for the first time, and they’re definitely a great thing to look into.
As you can imagine, it’s worth your while to look into VA loans because they have a lot of benefits than other types of loans just don’t have.
What is interesting about a VA loan is that it’s actually something that allows you to get a home under the assumption that if you were to default, the VA would repay a loan of the loan they guaranteed for you. Having such a powerful organization as Veteran Affairs behind you means that you’re going to get some pretty nice rates. 100 percent financing is also another benefit that veterans receive from the VA. You don’t have to put down a single cent, which means that you can get a home a lot easier than someone that has to put down 20% to avoid PMI. There is no PMI with VA loans, another benefit that servicemembers get to enjoy.
If you’re worried that you’re not going to qualify, don’t. The truth of the matter is that VA loans actually are easier to get than traditional conventional loans. The requirements are a lot easier, which means that you actually have an advocate in your corner that’s going to work with you.
What happens if you come into a lot of money and you want to pay down your mortgage? You won’t have to face pre-payment penalties the way some conventional loan homeowners have to, and you can have a higher debt-to-income ratio than other loans as well.
Refinancing is also easier — everything is already streamlined.
So why don’t people take advantage of VA loans? Fear, mostly. They worry that the limits of the VA loan will not let them get a home in a higher cost of living area. The truth is that VA loan limits have been increased a great deal in a short amount of time, as the department realizes that the costs of homeownership have also gone up.
Since you have so much backing behind you with a VA loan, sellers will do a lot to get your business. This might mean paying 6 percent of the closing costs and other concessions, because they know that your loan is a lot less risky than someone else’s.
Is it right for you? You’ll still need to find a mortgage broker that handles VA loans, but this is pretty easy to find. In fact, if you already live in a military community, most of the real estate outfits will be able to refer you to the right people will no problem.
We thank you for your service and encourage you to seek out VA loans today — it could be the best decision you’ve ever made!