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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!

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