military family-refinancing-types-for-va-loans

Why choose a VA loan

 

Main Reasons to Choose a VA Loan

The primary reasons to choose a VA loan are easily explained. The main benefits are the fact that NO MONEY DOWN is required to purchase a home. The other major benefit is NO MORTGAGE INSURANCE. Also, the qualification ratios are expanded in relationship to income and debt. Many times, the Veterans can qualify for a loan where someone who is non-military will not be able to find a mortgage program. The Veterans Administration’s goal is to give back to citizens who served our country. The federal government rewards veterans of the US military in several ways. Many programs, from education reimbursement to disability compensation, employment services, and life insurance are available to active and former members of the armed forces. Another benefit of military service is home loan assistance in the form of the VA Loan.

The VA does charge a VA Funding Fee in order to obtain the loan.  Over the years, the VA Funding Fee charge has changed.  Right now, the VA funding Fee is 2.15% of the loan amount.  This particular fee is actually added to the loan amount and financed into the transaction.  The Veteran can opt to pay the VA Financing Fee from their own funds, but normally, it will be added to the loan amount.  This is about the only drawback to the VA Loan process.

Through the VA Loan, the property taxes and homeowner’s insurance is paid with the mortgage payment.  The collection of property taxes and insurance is also known as impounds.  According to VA, impounds are required.  Impounds do make the monthly payment higher than some other loans, but it’s a nice feature to have when property taxes become due.

Of the 23 million+ living veterans, less than 10% have used the VA Loan benefit provided to them. If you know of any Veteran’s not using this dynamic benefit, please make them aware of it. They will thank you for the great advice. We look forward to helping you. Contact us directly at (888) 762-0220.

No money down is a huge advantage over other loan programs.