If you are in the market to purchase a home and are wondering about VA loans, you’ve landed in the right place. A VA loan is available through a program with the United States Department of Veterans Affairs and is designed for service members, veterans and eligible surviving spouses. Read on to learn more about VA loans.
Benefits of a VA Loan
The VA sets the qualifying standards, dictates the terms of the loan and guarantees a portion of the loan. A VA loan doesn’t require mortgage insurance, however they do have a funding fee. This funding fee can be built into the loan, and may be waived if the Veteran is receiving disability benefits. VA loans also don’t require a down payment, which can be a significant benefit for borrowers.
In addition to the benefits above, there are other major advantages to choosing a VA loan. These include: competitive rates, no prepayment penalties and low closing costs. VA loans may also be assumable with lender approval, meaning a home buyer can take over the seller’s mortgage loan with little to no change in terms.
Who qualifies for a VA Loan?
Most active-duty military and veterans may qualify for VA loans. This is also a viable option for spouses of military members who lost their life in the line of duty or as a result of a service-related injury, or who has been deemed MIA or POW. You may also qualify after six years of service in the National Guard or Reserves. Note that VA loans are only available when purchasing primary residences.
For more on VA loans, visit elevationscu.com/mortgageblog.
By Rick DeMario. Rick is a Mortgage Loan Officer at Elevations Credit Union. If you have questions regarding mortgages, please call 920.450.3180 or e-mail firstname.lastname@example.org. NMLS# 553346.