VA home loans can make becoming a homeowner easier and more affordable—yet only 13 percent of those who are eligible take advantage of their VA loan benefits.
For veterans, reservists, active-duty service personnel, military spouses and members of certain other groups, VA home loans can be the ideal mortgage solution. Here’s why.
No. 1: No Down Payment
Unlike most conventional loan programs, VA mortgages enable borrowers to finance 100 percent of a home’s purchase price. The lack of a down payment puts homeownership within easier reach.
No. 2: No Mortgage Insurance
With conventional home loans, lenders typically insist that borrowers who do not put at least 20 percent down pay for mortgage insurance. As this is not the case with VA loans, they are a very affordable option.
No. 3: Low Closing Costs
Saving up money for closing costs can be an obstacle to becoming a homebuyer. VA loans help in this regard, as borrowers are exempt from some of the fees normally due at closing.
No. 4: Easy Qualification
Like all types of mortgages, VA loans have eligibility requirements. However, compared to most other mortgage programs, the guidelines are more flexible. So, even borrowers with less-than-stellar credit can qualify.
No. 5: Government Guarantee
Lenders offer exceptionally favorable terms for VA home loans for a reason – they come with a guarantee from the federal government. In the event of foreclosure, the lender receives compensation for their loss.
No. 6: No Prepayment Penalties
When borrowers decide to sell their homes or refinance their mortgages, VA loans do not impose early-exit fees. There are no penalties for prepayment or refinancing, regardless of the time frame.
No. 7: Funding Fee Flexibility
VA loans require most borrowers to pay a funding fee. But the costs are waived in some cases, and funding fees do not have to be paid in cash – the expense can be added to the home loan.
No. 8: Financing Options
Fixed-rate and adjustable-rate VA loans are available. And, a borrower can finance the purchase of a house, duplex, condo, manufactured home or other types of properties. In addition, borrowers can refinance their existing mortgages.
No. 9: Potential for Transfer
When a borrower decides to sell their home, they can transfer their VA mortgage to an eligible buyer. The fact that VA loans are assumable can be a huge benefit, particularly with the rising interest rates.
No. 10: Range of Mortgage Lenders
VA home loans are not funded by the government – banks, credit unions, savings-and-loans institutions and mortgage companies provide the funding. So, borrowers have the freedom to shop around and compare offers.
Are you eligible for a VA loan? If you’re ready to become a homeowner in Utah and want to explore your home loan options, Integrity First Lending can help.
As mortgage and home loan experts with decades of combined experience, the Integrity First Lending team has the skills and qualifications to find your best financing solution. We can get you pre-qualified and pre-approved for a mortgage, and with us, the process of becoming a homeowner is both easy and convenient. Contact our South Jordan or Tooele, Utah, office today to discuss VA home loans.