It's crucial to understand that although the VA provides a guarantee for a portion of VA loans, these loans are actually initiated and financed by private lenders like banks and mortgage companies.
It's essential to collaborate with a lender approved by the VA, who possesses expertise in managing VA loans, to ensure a seamless process.
Juliet Ford at American Financial Network specializes in VA Loans. Together we canhelp you understand how to use your VA loan to purchase a new home!
Some Key Takeaways of a VA Loan Include:
No Down Payment: VA loans typically don't require a down payment, making homeownership more accessible for eligible veterans.
Competitive Interest Rates: VA loans often offer competitive interest rates compared to conventional loans, potentially saving borrowers money over the life of the loan. Usually on average .5% lower than standard loans.
No Private Mortgage Insurance (PMI): Unlike many conventional loans, VA loans don't require private mortgage insurance, which can result in lower monthly payments. (However The VA has a funding fee which varies based on your down payment amount. It can be paid at closing or it can be included in your loan.)
Flexible Credit Requirements: VA loans often have more lenient credit score requirements compared to conventional loans, making them accessible to borrowers with less-than-perfect credit histories.
Limited Closing Costs: VA loans limit the types of closing costs that veterans are allowed to pay, reducing the financial burden on borrowers.
Reuse Benefits: Veterans can reuse their VA loan benefits multiple times throughout their lifetime, provided they meet eligibility requirements.
Assumption of Loan: VA loans are assumable, meaning that if a home buyer meets VA qualifications, they can take over the seller's VA loan instead of
obtaining a new mortgage.
Options for Refinancing: VA loans offer options for refinancing, such as the Interest Rate Reduction Refinance Loan (IRRRL) or Cash-Out Refinance, which can help borrowers lower their interest rates or access equity in their homes.
Support from the VA: The Department of Veterans Affairs (VA) provides support and assistance to borrowers throughout the life of their VA loan, ensuring they understand their benefits and responsibilities.
VA Loan Limits: VA loans generally offer higher loan limits compared to other loan programs.
Please reach out and we will walk you through all the steps not listed here to help you achieve your goal of home ownership, refinancing, or moving!
