VA loans allow borrowers to finance up to 100% of their primary home’s value and purchase a new home with no down payment requirements. Since banks require a large amount in down payments, VA loans offer a better alternative to several homeowners.
In several cases, a 10-year 20% down payment loan puts home ownership out of the question for many first time buyers, especially those surviving on war veteran and social security benefits. Conventional loans require a minimum of 5% down payments, whilst VA loans require 0%. This helps individuals save up on their funds.
If you have answered “yes” to any of the above questions, then a Veterans Affairs (VA) loan is the best option for you. Such loans can be availed, even with an unimpressive credit score and rating. Unlike other market loans, a VA loan is available as both fixed rate and ARM mortgage and does not include any monthly insurance (PMI).
VA loans offer two benefits that lead to a substantially lower monthly payment. Firstly, Private Mortgage Insurance (PMI) does not apply to VA loans. This removes the added monthly cash outflow the buyers would have to bear had they opted for conventional loans. Secondly, VA loans are offered with low and competitive interest rates.
The qualification guidelines for VA loans are less stringent than traditional loans. Since the government backs all VA loans, banks have relaxed the lending rules and regulations for all VA loan applicants.
At Absolute Home Mortgage Corporation, all our loan officers are federally licensed. Communicating with our loan officers is the first step towards getting the right mortgage deal on your home. Because everyone has different loan needs, our officers will assess your needs, ask you relevant questions, and advise you on the best loans and monthly payment plans per your requirements.
Our loan officer will also explain all the relevant steps – from getting started and locking in your interest rate to closing your loan. We can assign a dedicated officer for all future correspondences and dealings with our business – till the time the final deal has been signed.
For homeowners facing higher-than-market interest rates on their loans, it is a good idea to check out other financing options. That’s where we come in. Refinancing offers several no-cost and low-cost incentives to save you interest premiums and high rates. Similarly, short-term loans carry lower interest rates and allow you to pay off your loan in a much shorter time. Refinancing can also help lower your monthly payments, as well as your overall credit period. Be advised that whenever you consider refinancing your current mortgage loan, your finance charges may be higher over the course of the loan. Crown Home Mortgage always recommends discussing the TIP or Total Interest Percentage with your licensed loan officer to ensure the loan creates a long-term benefit.
To learn more about VA loans and how to apply, give us a call today!