VA Financing: A Good Deal for Veterans

There are millions of veterans and service personnel who are eligible to apply for VA financing. Despite the fact that many of them have already used up their loan benefits, with VA financing it will still be possible to purchase houses using the remaining or restored loan entitlement.

Advantages of a VA Loan

Before finally deciding on a new mortgage to finance a house purchase, it is highly advisable for veterans to consider the benefits of getting a VA home loan. With several advantages it offers over some conventional loans, it is definitely safe to say that it’s a good deal for veterans. Here are some of them:

  1. In many cases, there is no down payment required.
  2. The loan amount may reach up to 100 percent of the VA-established value of the house, but because of secondary market requirements the loans usually do not go over $240,000.
  3. Negotiation on interest rates with the lender is flexible.
  4. There is no monthly mortgage insurance premium to pay.
  5. There’s a limitation on the closing costs of the buyer.
  6. An appraisal can be arranged, which will let the buyer know the value of the property.
  7. Thirty year loans offers a number of options for repayment plans:
    • Traditional fixed payment (this involves constant principal and interest; increases or decreases in property taxes and homeowner’s insurance coverage may also be likely)
    • Graduated Payment Mortgage (GPM). This is a kind of low initial payment which slowly gets higher at the beginning of the sixth year
    • Growing Equity Mortgage (GEM) may be applicable in some areas. This payment gradually increases with all of the increase directed to principal. The result is an early payoff of the loan.
  8. In many loans used for new houses, construction is monitored at different stages to make sure that it is in conformity with the approved plans.
  9. There’s an assumable mortgage, which is dependent on the VA approval of the assumer’s credit.
  10. The loan can be prepaid without penalty.
  11. VA offers financial counseling in order to assist veterans in keeping their homes in the middle of a temporary financial struggle.

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VA Financing: A Good Deal for Veterans | VA refinancing | VA Home Loan Refinance | VA Loan Requirements