Most veterans and military service members know VA loans are out there – and that they can help them buy a home more easily and, in most cases, more affordably.
But when it comes down to the nitty-gritty details of these mortgage options? Things get a little murkier.
In honor of Veterans Day this Saturday, we’re taking a closer look at VA loans – and what veterans should know about using them.
You can get a VA loan anytime during or after your service.
There is no expiration date for your eligibility and no limit to how many times you can secure a VA loan. You can take one out on your first home, second home and any home you buy after that.
Your VA loan can cover your down payment.
Though you don’t necessarily need 20 percent down with most loans, you’re still going to need at least 3.5 percent come closing day – and that means thousands (or even tens of thousands) out of your savings account. VA loans don’t require a single dollar in down payments. Seriously.
Your VA loan means no mortgage insurance.
Most FHA-backed and conventional loans require private mortgage insurance – yet another cost to hike up your monthly bill. But VA loans? There’s no PMI whatsoever. Imagine the savings over time.
You’ll get lower rates.
Many times, VA loans will qualify you for a lower mortgage rate. That means a lower payment every month you own the home.
You may find it easier to qualify.
Typically, VA loan programs have lower credit score and financial health requirements than other mortgage options out there. You may even be able to secure a VA loan if you’ve had a previous bankruptcy or foreclosure on your record.
You can use it to refinance or cash-out.
Need money for a remodel? Want to refinance your current mortgage for a lower rate or payment? You can use VA loans in these scenarios, too.
You’ll save on other fees, too.
A lot of closing costs go away when using a VA loan, including the funding fee. This typically runs as high as 3 percent of your total loan, so it can mean serious savings come closing day.
Do you know a veteran or military service member? Show your gratitude this Veterans Day by sharing this post. You may just save them serious cash in the long run.