Benefits Of Applying For A Va Loan

Benefits Of Applying For A Va Loan

Veterans and men and women currently serving in the military who are considering home financing options should look into a VA loan. Because of their service to the United States, they have earned the privilege of having certain benefits. One of these benefits is a VA mortgage to help them finance their homes. This type of financing offers several benefits that may not be available with a traditional mortgage.

VA Loans Save Borrowers Money
These loans do not require a down payment and they do not require any mortgage insurance. These two advantages alone can save borrowers hundreds of dollars on their monthly mortgage payment! Not having a down payment is especially great for a first time home buyer who may not have a lot of money to put down on a new house. And not having to pay mortgage insurance eliminates one home-related expense right away.

Some of the costs associated with this loan can often be financed, so the borrower does not have to pay a lot of money up front. Because these loans are guaranteed by the Department of Veteran Affairs, they tend to have lower interest rates, which also saves borrowers money on their monthly payments.

It's Easy to Qualify
Compared with other loans, VA loans have easier qualification requirements. Borrowers are not required to have high credit scores or large incomes in order to qualify. The Department of Veteran Affairs does require that borrowers have clean credit histories of at least one year and that they meet minimum residual incomes to ensure that they can make their monthly payments. The residual income is based on regional location, family size and the amount of the loan. The borrower must not have been dishonorably discharged from the military in order to be eligible for this type of financing.

Refinancing Benefits
There are several options available when refinancing with this type of loan. Many borrowers refinance in order to lower their interest rates, especially if the market has changed or the value of their home has increased. Borrowers can also refinance to change the terms of their loan, including extending the time frame of their loan or switching from an adjustable rate to a fixed rate, which saves them money over time.

Borrowers can also refinance in order to consolidate their debt or receive cash back for other expenses if they have enough equity. The cash they receive can be used for any of their personal expenses. Also, potential borrowers can refinance a non-VA loan to a VA loan in order to take advantage of the many benefits this type of financing offers.

Additional Benefits available to Disabled Veterans
If a veteran was disabled as a result of service, he or she is eligible to receive additional loan benefits. Their funding fees will be waived and, depending on their state, they may not have to pay property taxes, which can save borrowers who are disabled a great deal of money. Also, disabled veterans may be eligible to receive grants to help them make their homes more accessible for their disabilities.

These loans offer several benefits to both veterans and current members of the US military. Now is a great time to speak with a VA loan specialist about taking advantage of this type of financing.