Being a part of the United States military is an honorable thing that most people are proud of (deservedly so). While this act gives the service member plenty of pride, there are also many veterans benefits offered by the U.S. government. One of the great benefits of being a part of the military of our great country is the option to take out a Veteran’s Administration home loan. Read on to learn more about VA home loans and the great benefit they offer to those who have served.
With the right 0 down VA lender, obtaining a VA home loan is much easier than taking out a traditional home loan. Whether you are looking to buy a home, repair one, retain a home, build a new home, or adapt a home for your needs, this type of loan can come in quite handy. As you begin to apply for a home loan, you will go through a private lender just as if you would other types of home loans. This lender will be the one to ultimately make the decision, but their guidelines are a bit different than the ones for the traditional types of home loans. The reason for this is simple, the VA actually guarantees a large portion of the loan and this typically offers much better terms for you.
VA home loans are much less costly than conventional loans. If you were to apply for a loan that is not backed by the VA, you would likely be required to put down at least 20 percent of the home’s value. Instead, the VA’s benefits allow you to own a home with absolutely nothing down. Not only that, but you will not need to purchase Private Mortgage Insurance with a VA loan. This can save quite a bit on your monthly payment.
When you choose to utilize your VA home loans benefits, you will be required to pay a VA funding fee. This is an additional cost that conventional lenders will not require, but it is actually helpful. The fee goes directly to the Veteran’s Administration and allows them to continue offering the home loan benefit to future service members. The fee is between 3.5 percent and 2 percent, depending on the purchase price of the home and how many times you have used the benefit in the past.
As you progress on your journey of using your VA home loan benefit, there are a few things that you should do. First, decide how much of a home loan you would feel comfortable with. There are helpful calculators online that can aid in finding the proper amount based on your income, your other debts, and various factors. The calculator may give you an amount that seems too high for you, so take some time to decide how much of a house is best for your life. You also should look at your credit report to find out if there are any mistakes. A small discrepancy can hold up the loan process. It is easy to take care of any issues with the report, but it will take time. Look over the report and if you notice something that shouldn’t be there, contact the creditor and the reporting bureau who will rectify the situation.
In conclusion, a VA home loan is a great choice and an amazing benefit for those who have served in the United States military. When you want a new home and want to do so for the least amount of money out of pocket, you should consider looking into and applying for a VA home loan for your housing needs.