Are you interested in buying a new home? How about refinancing the property you currently live in? Either way, if you are a veteran or current service member there is a good chance that you qualify for a VA home loan.
Although you are not required to rely on this type of loan, it is something you may want to consider thanks to the many benefits.
While there is no “set maximum” in place, most lenders will only offer a VA loan of up to $417,000. Fortunately, this is more than enough for most buyers.
Mortgage rates are at an all-time low. For this reason, there has never been a better time to buy a home. This is particularly true if you can take advantage of a VA loan.
When compared to more conventional loans, it is easy to see that there are four benefits of turning to the VA.
1. Buy a home with no money down. For many people, this is by far the biggest advantage of a VA home loan. Since you don’t have to put any money down, you will find yourself in position to act fast – no matter how much cash is in your bank account.
2. Refinance instead of buying. Is your current mortgage payment too high? If so, low interest rates mean that now is the best time ever to refinance. The VA can help with this, allowing you to lower your monthly payments – sometimes by as much as $100 or more per month.
Tip: a lower rate may allow you to refinance to a shorter term, without a higher monthly payment.
3. Pay off higher interest balances. Who wants to pay the bank more in interest than they have to? With a VA loan, you can pay off higher interest balances so that more money can be put towards principal.
4. The chance to lock in a historic low rate. While home loan rates are always fluctuating, it is important to note that there has never been a better time to buy. With rates as low as ever before, you can get more “bang for your buck.”
With lenders all over the country offering VA home loans, it is simple to start the process. Once ready, you can complete an application and work with your chosen lender as you move forward with the purchase process.
There are many VA home loan benefits, with four of the best listed above. If you qualify, you should definitely consider taking full advantage.