subject: Top Reasons To Do A Va Home Loan [print this page] When it comes to qualifying for a home mortgage loan, there are many different types of programs. With the many different mortgage loan programs available, it is important to choose the best program for your particular mortgage needs.
One of the home mortgage loan programs you can choose from is a VA Home Loan. This type of program is designed for veterans to purchase a primary residence or refinance an existing mortgage. Below are the many benefits to the VA mortgage loans.
No Down Payment
A VA home mortgage offers veteran buyers a program with a zero down payment. This means the loan will equal the sales price or the appraised value of the home. The VA home mortgage program permits veterans with qualifying income and credit to acquire a home without a down payment towards the sales price of the home. On the other hand, Veterans do need money towards closing costs, which the seller can assist the buyer with.
Seller Concessions
VA home loans allow the seller to contribute up to 4% towards the buyers closing costs. This is exceptionally important in helping a veteran purchase a new home and reducing the amount of money needed for closing. For example, if a buyer purchases a house for $100,000 the seller can contribute $4000 towards the buyers closing costs. Seller concessions can pay pre-paid items, title fees, mortgage company fees as well as the VA funding fee. The veteran is not allowed to pay for the termite report, which is generally paid by the seller.
Reduce Rates
For many veterans, VA home mortgages offer the most competitive rates. VA mortgage rates are not tied to the credit scores the way conventional home loan rates are. For example, if a client has a credit score of 660, on a VA home mortgage the rate would be the same if their credit score was 780. However, on a conventional home loan, the credit score of 660 compared to a 780 would see a higher interest rate.
Mortgage Insurance
Another major benefit in the VA home mortgage program is there is no Mortgage Insurance. Unlike Conventional mortgage loans and FHA home mortgage loans, VA mortgage loans do not charge monthly mortgage insurance. This is an average savings of anywhere between $30 a month to $200 a month, depending on the size of the home loan.
Mortgage Loan Size
VA mortgages do have a set loan limit. To determine the loan limit in your area, contact your mortgage professional. For example, the Dallas "" Fort Worth area VA loan limits are $417,000
With many different types of mortgage home loans, it is important to understand all your options. For a veteran, VA mortgage home loans are a great way to purchase or refinance a home. It is always important to understand the benefits of each mortgage program that you qualify for and to make sure you are getting the best possible mortgage home loan. Consult a home mortgage loan advisor to see which program is best for you!
