VA loans are specialized mortgage loans guaranteed by the U.S. Department of Veteran Affairs (VA) meant for the use of veterans, or their surviving spouses, wishing to purchase a home with no down payment and in an area where private financing is not available. For veterans looking to purchase a new home or piece of property, it is a much better choice for them to apply for a VA home loan rather than apply for a normal FHA loan because of all of the benefits they can take advantage of.
Some of the benefits include:
- Veterans or their spouses being subject to more flexible credit score restrictions.
- Mortgages with lower interest rates; these rates will also decrease if the general market decreases too.
- No need for mortgage insurance or a down payment.
- Veterans or their spouses being subject to lower income requirements.
- Financial assistance from VA if veterans or their spouses are in default.
There are additional benefits offered by mortgage lenders to disabled veterans as well. These include the funding fee, and in some areas even taxes, being waived.
The Loan Is Available for Active Military Too
VA home loans are also available to currently active members of the military too. This gives current military servicemen and women the financial opportunity to take care of their families back home. They have the option to refinance their current homes for cash, the most cash out on a refinance of any other type of loan, or to lower the interest rates on their homes. By choosing VA mortgage rates these men and women can also be allowed to borrow more money than what they can borrow with FHA home loans or conventional mortgages.
Overall, it is easy to see that if you are a veteran or a spouse of a veteran and are looking to purchase a new home, it is best to go with a VA home loan. With all of the benefits this type of loan offers, you can be sure that you will have the aid you need to own a home for you and your family.