First rolled out just before the close of the Second World War, the VA Housing Loan Program has been availed by millions of American veterans to date. Offered by the U.S. Department of Veterans Affairs (VA), the VA Housing Loan Program is the only option available for veterans in the country to secure a mortgage.
In the wake of the great recession of 2008, the demand for VA loans has soared greatly. This is due to the significant financial benefits that VA loans provide many veterans who might otherwise fail to qualify for a mortgage. For a lot of U.S veterans, getting a VA loan is the only available path to home ownership.
The VA Housing Loan Program has been created to allow not just U.S veterans, but also widowed military spouses and active duty service members to secure home ownership. This Program from the U.S. Department of Veterans Affairs has grown in popularity over the years. This is mainly because of the benefits of a VA loan. What are the benefits of a VA loan that attract veterans? They are as under:
1. Zero Down Payment
This is the foremost benefit of the VA Home Loan Program. There’s no need for veterans to make a down payment to secure the mortgage. Traditional and Federal Housing Administration (FHA) loans require borrowers to pay a down payment of 5% and 3.5% respectively to secure the home loan. For veterans, it could take years to save this kind of money. The VA Housing Loan Program saves veterans from this trouble by allowing them to buy a home with 0% down payment. This is the least they deserve for serving our country, often in the worst of conditions.
2. No Mortgage Insurance
Since the mortgage is insured by the U.S government, veterans do not need to get monthly mortgage insurance when looking to secure a VA loan. According to VA estimates, this will result in overall savings of billions of dollars in insurance costs for veterans over the life of their loans.
Another great benefit of a VA loan is the flexibility that it offers. Veterans can buy a home of their choice using a variety of financing options. For instance, they can choose between constructing a new home or improving an existing house. Additionally, they can choose between a manufactured home, a condo, or a conventional home.
4. Less Taxing Credit Requirements
The Department of Veterans Affairs does not set or enforce any credit benchmarks. This is because it neither issues the loan nor supervises the loan program. Instead, the credit score requirements are evaluated by VA lenders using a borrower’s risk of default. The number that most VA lenders are looking for is 620. This is within the fair credit range of Fair, Isaac and Company (FICO).
As seen above, there are many benefits to getting a VA loan. If you want to avail all these benefits of a VA loan, then get in touch with us VA loan for Vets today!