Buying a home is a big expense and a life-changing decision. If you're considering buying a house, you may be planning to take out a home loan to pay for it. If you're a veteran or an active service member, it's worthwhile to look into VA mortgage loans. This type of loan can offer many benefits and it's a great option for those who want to finance a home but have limited funds. Here are the reasons to take out a VA mortgage loan.
You Won't Need a Downpayment
Almost all home loans require that a down payment be made. The good news is a VA home loan won't require a down payment. If you're tight on cash, but want to buy, this is a good option for you to look into.
Get a Better Loan Rate
VA home loans also tend to have more competitive rates. If you're looking to get a good deal and want to make your monthly mortgage payment as low as possible, you're going to want to apply for a VA home loan. There's no sense in getting a traditional home loan if you can qualify for a loan with a lower interest rate.
Lower Closing Costs
VA home loans also have lower closing costs. This is because regulations are put in place to limit these costs. Closing costs can be extremely expensive and add to the amount of money that needs to be brought to the home closing. You'll be glad that these costs are a lot lower with this loan type.
No Private Mortgage Insurance Costs
When you don't put at least 20% down on your home purchase, most lenders require you to pay an additional fee, called private mortgage insurance. This is another expense added to your monthly mortgage payment. The great news is VA home loans don't charge a private mortgage insurance fee! That means more money saved.
It's Easier to Qualify for This Loan Type
As long as you're a veteran or active service member, it's easier to qualify for this type of loan. Other home loan types have very strict requirements in place. You may need a higher income amount or a high credit score to qualify. You can have greater confidence when applying for a VA home loan.
Yes, a VA home loan can be a great option. If you're ready to buy a home and want to make it an affordable purchase, reach out to a mortgage lender to apply for a VA mortgage loan!
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