For someone currently serving in the military, or for individuals that have served in the military in the past, a VA Lender may be quite a welcome sight when someone with a military background is looking to purchase a home they can afford. There are many benefits to taking advantage of mortgage loans that are provided by the VA.
No Down payment Required
One of the most exciting benefits provided by a VA Lender is not having to come up with a down payment. Depending on the price of the home, even the smallest required down payment, 3.5% with a FHA loan, can still amount to a lot of money.
There are other loans that require up to a 20% down payment, which even for more affordable homes can represent an amount of money that most people would be hard-pressed to come up with. Many times, there are down payment assistance programs. Other times, potential buyers have to be creative in terms of how they secure the money for a down payment. Fortunately, a VA loan requires no down payment.
Possible Waivers for Closing Costs
Closing costs may also be difficult to come up with, depending on how much it will cost to officially close on a purchased home. Someone who qualifies for a VA loan, especially someone that is disabled because of their military service, may be able to receive a waiver provided by the VA. This effectively eliminates closing costs, and makes the cost of buying a home even less.
Less Stringent Requirements for Credit Scores
Not only do VA loans provide competitive interest rates, they also have much less stringent requirements when it comes to credit scores. This can allow a person with less than stellar credit to not only get approved for a mortgage, but to have a mortgage that has a competitive fixed interest rate for the life of the loan.
If you currently serve in the military, or have served in the past, and you want to buy a home, it would be in your best interest to take advantage of a VA loan. The competitive rates, reduced costs, not having to pay a down payment and further reductions in cost if a person is disabled makes this the perfect loan for buying a home. If you would like to learn more about a VA loan, you may want to visit website. You can also connect them on Facebook.
