Tips & Special Topics
An In-Depth Look Into VA Loans
Added February 11, 2008
VA home loans are an outstanding benefit to the men and women who have served our great nation. The VA enables veterans to get financing at up to 100% of the purchase price of the home. Plus, with VA loans, the seller is often times permitted to pay all of the buyer’s closing costs. It’s a program that can save well-deserving veterans thousands of dollars.
In fact, when VA mortgage loans are compared to traditional home financing, the VA home loan can potentially save a veteran hundreds of dollars a month. The VA loan does not require that the borrower take out two separate loans (the second at a higher rate of interest) at higher rates to get 100% financing, which has at times been a common method of home financing, using conventional mortgages. A VA loan is designed to help those who have fought for our country.
A VA loan might be available at a lower interest rate and requires no mortgage insurance. As an additional benefit, VA home loans can be obtained without a down payment
Many veterans worry that bad credit might become a roadblock. With VA loans, poor credit history does not necessarily disqualify you from obtaining a home loan. The VA loan program has been designed to handle a poor credit history better than a traditional loan. The VA loan program was created to help veterans, even many who may have had some credit problems.
There are three main benefits of the VA loan program. The first major part of the program is that a down payment is not required. This saves a veteran thousands of dollars at the time of closing. In addition, through a properly structured contract in many states, the VA home loan program can be done with no buyer-paid closing costs. Lastly, the VA home loan program is not driven by credit score.
These three major benefits of the VA loan program have been in place since the introduction of the program in the year 1944. In recent years, legislation has increased the maximum loan amount to over $400,000. This figure is above the national average purchase price of a home. This means that a veteran can potentially purchase a very nice home for his or her family.
When obtaining a VA home loan or utilizing the VA home loan refinance program, you can often secure your loan in a shorter amount of time than with a traditional mortgage. Many VA loans are closed within three weeks of the purchase contract.
The VA home loan program was created to assist the courageous men and women who have protected our country. The millions of dedicated men and women who have served in the armed forces deserve a round of thanks. VA mortgage loans are a terrific way for a veteran to obtain financing for the purchase of a home.
