5 Reasons to Use Your VA Loan Benefits
Here we’ve compiled a list of the top five reasons you should be using your VA home loan benefits. As a veteran, these benefits are very useful and will save you money.
In no particular order, let’s list the ways that these will help you.
No Down Payment
Right now is a great time to be buying a home. New-home purchases are close to an all-time high across the nation. For example, they’re actually a lot higher than they were this time last year. Economists and mortgage professionals feel like this trend is going to continue to increase as well.
As a veteran, there’s no down payment. It’s as simple as that.
No Mortgage Insurance
As a reminder, FHA, USDA, and conventional loans all have mortgage insurance. VA loans, however, do not have mortgage insurance. It’s the only loan out there that doesn’t. Along with no down payment, this will make the monthly-cost to owning a home a lot lower than it would be for a civilian.
Less Than Perfect Credit
This is something we like to mention repeatedly. Here at Low VA Rates, we do not have minimum credit requirements. We have customers tell us all the time that other companies would require them to have something like a 640 or 620 FICO score in order to be eligible.
This is not a VA rule. This is a private lender rule so a minimum FICO score is not pertainable to us. We follow the VA Lenders Handbook and we do not have any written guidelines that establishes a minimum credit score.
Lower Interest Rate
In general, VA loans have lower interest rates compared to conventional loans. That’s one of the huge benefits you should be getting for your honorable military service.
But at Low VA Rates, we help you get even lower interest rates. It’s our business model. We try to get you the absolute lowest rates, or we could pay you up to $250. It’s part of our lowest interest rate guarantee.
Closing Cost Reduction
Sometimes there are lower closing costs on VA loans than the conventional ones. It isn’t always the case, but if set-up correctly they can be.
For example, when buying a home with your VA home loan benefits, the seller can cover up to 4% of the closing costs.
There’s a list in the VA Lenders Handbook of non-allowed closing costs. That means the VA won’t allow veterans to be charged certain costs, such as:
- Escrow fees
- Attorney fees
- Signing fees
- Notary fees
- And certain inspection fees
Veterans can’t be charged these fees. But if you were to do a conventional loan, you would be charged these fees. So that’s an example of how your closing costs can be reduced. The VA is looking out for veterans.
Here at Low VA Rates, we’re going to charge only the closing costs that must be charged. We can’t charge you junk fees, and if we could, we wouldn’t. That isn’t a reflection of our name or our organization. We want to keep your rates and fees low.
As always, if you have any questions, feel free to give us a call at 855-223-0705. We are here to help you with the VA loan process and answer any questions you might have.
We try to make it quick, easy, and fun to utilize your VA home loan benefits. Click here to get started online.