Since their inception during World War II, VA loans have helped over 22 million service members purchase homes, and it’s a program that still exists today, three-quarters of a century later.
There are a number of benefits to using a Veteran home loan when purchasing a house, so if you are a Veteran or active service member of any American Military branch, this type of home loan mortgage could help you buy the house of your dreams.
#1 They Often Don’t Require Down Payments
VA loans are popular because they often don’t require down payments to purchase homes. Most conventional home loans require a 5% down payment, while FHA loans require 3.5%. This can equate to thousands of dollars, which not everybody has on hand! Removing this requirement makes it easier for you to move into a home.
#2 VA Loans Don’t Require Monthly Mortgage Insurance
Monthly mortgage insurance premiums like PMI are designed to protect lenders from shouldering the brunt of a foreclosed-upon home, but they can add quite a bit to a monthly mortgage payment. Because of certain protections that VA loans put into place, PMI isn’t necessary, keeping those payments low enough for Veterans and military service members to afford. There is an upfront lump sum mortgage insurance that is often rolled into the home loan. The pool of funds created by this upfront MI is what the VA uses to guarantee the loan in case of default. FHA loans also have an upfront MI that is rolled into the loan. These upfront fees make very little difference in the payment due to the loan being amortized over 30 years.
#3 VA Loan Interest Rates Can Be Lower
Keep your monthly payments lower with a VA loan. On average, VA loans offer the lowest interest rates of all home loan types, which is part of what makes them among the most affordable loans in the country.
#4 Refinancing Options Exist for VA Loans
Just because you invest in a home using a VA loan doesn’t mean you’ll be kept away from refinancing options that would keep that payment as low as possible. Homeowners with existing VA loans have the option to lower their monthly payment with a new interest rate. Veterans or service members that originally financed their homes with non-VA loans also have the option of refinancing into the VA loan program if they qualify.
#5 VA Advocacy Limits Foreclosures
The VA employs staff who advocate on behalf of Veteran homeowners facing foreclosure to help them settle with other alternatives. This can save your home and your credit, giving you protections that other types of homeowners simply do not have.
#6 DC Lending’s Special Heroes Program for Veterans
In addition to all of these VA loan advantages, DC Lending has a special Heroes Program that offers extra benefits to Veteran home buyers. For Veterans, we cover the cost of your appraisal. We also have options that reduce or eliminate your closing costs with our lender credits. If you are already pre-approved for a VA home loan it would be in your best interest to get a second opinion price quote from DC Lending. You may receive better loan terms and will have the cost of your appraisal covered.
If you are a Veteran looking for the easiest and most financially-sound way to purchase a home, contact DC Lending to learn what a VA loan can do for you. If you are ready to apply for a VA loan, we have an easy online application. Once you apply online, one of our highly-qualified loan officers will contact you within 24 hours.