The Veteran’s Administration (VA) home loan program is one of the most popular benefits offered to veterans. This home loan program is intended to offer ease to the socioeconomic dilemmas of the post-war readjustments of those who relentlessly provided services in the US military. This home loan partially guarantees mortgages and refinancing made via private lenders like banks and mortgage companies. This loan type offers borrowers more favorable terms compared to other loans in the mortgage industry. If you’re on the lookout for dependable mortgage loans in Utah, ponder on the following advantages of a VA home loan which might just suit you or your family members.
- Zero down payment-This is the program's signature benefit. Qualified borrowers can avail of any home loan limit without releasing any down payment. The terms under this favorable loan feature may change annually. Also, it’s important to note that most mortgage loans in Salt Lake City require buyers to make at least a minimal down payment. Clients who avail several other loans usually shell out a minimum down payment requirements of 5 % and 3.5 %, respectively for conventional and FHA loans. For example, on a $500,000 mortgage, that's a $25,000 down payment for conventional and a $17,500 down payment for FHA.
- Pocket-friendly Closing Costs- One of the most salient and best features of a VA home loan is it limits the closing costs lenders can charge to the loan applicants. Moreover, borrowers can even convey and haggle with the seller to pay all of their loan-related closing costs and up to 4 % in concessions, which can entail factors like insurance and taxes among others. Although there is no assurance that lenders will agree during the negotiations, veterans can still definitely explain their side and humbly negotiate with their mortgage brokers in Salt Lake City along the process.
- Flexible Funding Fees- VA loans require a “funding fee”, an upfront cost in reference to your eligibility, loan amount, and other factors. Although these required payments don’t need to be paid right away. This can be financed together with the loan, hence nothing is due at closing. We say it’s flexible because these fees can also be waived for unmarried surviving spouses of veterans who passed away in service or as a result of a service-connected debilitating circumstance, and for veterans who got a VA disability compensation. Make sure to discuss this with your chosen Utah mortgage lenders for more details.
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Whether you're looking for a home equity loan in Utah, or just want to know more details on the advantages and processes of availing home loans, the first step is to get rate quotes. By reaching out to our team, we can then discuss topics like debt to income ratios, qualifications, and other questions you have in mind. Allow us to guide you with your home buying journey by discussing how these perks apply to you. You can get started online today by contacting us. Feel free!