Why Military Veterans Should Use a VA Home Loan

Why Military Veterans Should Use a VA Home Loan

With the endless dedication, support, and sacrifices veterans have made to protect our country and our freedom, it’s only fair that our heroes receive some benefits in return! One major benefit of serving our country is the opportunity to use a Veterans Affairs (VA) home loan to purchase or refinance a home.

Here are five great reasons why veterans should consider a VA home loan when they’re looking to purchase or refinance a home.

1. In some cases, down payment not might be required

Since the federal government insures VA home loans, lenders know their interests are protected. Therefore, they’re able to offer a qualified buyer a home loan with no down payment necessary.

2. Monthly PMI isn’t required.

Typically, homebuyers who cannot meet a 20% down payment will be required to pay private mortgage insurance (PMI) on conventional loans, or PMI plus monthly mortgage insurance premiums (MIP) on a Federal Housing Administration (FHA) loan. However, VA loans are not charged monthly insurance fees, potentially leading to substantial cost savings each month!

3. Veterans can save on closing costs

Veterans could save a pretty penny on closing costs. The typical buyer pays about 2-5% of the home loan amount in closing costs. Although most veterans will be required to pay a one-time funding fee, they’ll pay reduced closing costs fees. Again—money saved!

4. VA loan rates are typically lower than other loans

As mentioned previously, since VA loan investors know that the loans are guaranteed by the Department of Veteran Affairs—veterans could receive a better interest rate than other home loan programs would offer.

5. You’ll have an edge on selling your home in the future.

When a veteran is ready to sell a home they purchased with a VA loan, they’ll have the option to allow a buyer—veteran or not—to assume that VA loan. This could make a home more attractive to potential buyers, potentially leading to a timely sale!

If you, a friend, or a loved one is a veteran, make sure you discuss your VA home loan options with a mortgage professional. Our nation's heroes deserve a home loan they can feel great about, and a VA loan may just be the perfect fit!

Keep Reading

SWBC Mortgage Client Testimonials What's it like to work with us?

This was our first home purchase and everything was above our expectations and we couldn’t have been happier with the process!

Dallon M.

Everything was great. Very professional staff with good communication.

Adilene M.

You guys just nailed it! Awesome.

Cesar M.

Thank you! I wish I started with you earlier. Very knowledgeable team.

Jocelyn C.

Everything was perfect, we really appreciate SWBC for their hard work.

Bahadir E.
©2024 SWBC Mortgage Corporation. Loans are subject to credit and property approval. Other restrictions and conditions may apply. Programs and guidelines are subject to change without notice. Rates are subject to change daily. This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.