What Borrowers Should Know About Getting a VA Loan
The government offers many benefits to the country’s veterans, including an ideal home mortgage loan.
As banks and other financial institutions continue to tighten their lending standards, the demand for Veteran Affairs mortgages has increased significantly in the past few years. For homebuyers who want to keep their monthly payments low and those who need help with the down payment, a VA loan is one of the ideal mortgage options.
No Down Payment Needed
With loans guaranteed by the VA, you don’t need to put any money down. In addition, this type of mortgage doesn’t require monthly mortgage insurance.
As UtahLoanPros.com explains, “A VA mortgage is one of the few loan programs that allows borrowers to finance 100% of the home’s value and purchase with $0 down. There are certain qualifications you have to meet in order to qualify for a VA loan (typically at a minimum you must be a veteran or an active member of the US armed forces). But, if you do, you can enjoy lower closing costs, lower mortgage payments and the possibility of no down payment.”
It’s easier to qualify for VA loans than conventional mortgages. Those eligible to apply are veterans, most members of the military, active duty personnel, some surviving spouses, and reservists and National Guard members.
To get a VA loan, veterans and active-duty members should have served a minimum of 90 days during wartime. Reserve or National Guard members, on the other hand, must have served at least six years.
Fees and Requirements
VA loans have a one-time funding fee, which can vary depending on the financial situation, type of veteran, and the amount of the down payment. First-time homebuyers, without down payment, have to pay a fee of 2.15 percent. Those who are applying VA loan for the second time, with zero down payment, will pay 3.3 percent of the overall amount of mortgage.
To qualify for a VA loan, it’s important to be familiar with the program’s benefits and requirements. This type of mortgage can make a big difference to the lives of our country’s heroes.