1 / 3

VA Loan Benefits

A Complete List of VA Loan Benefits You Can Avail As A Veteran

sarahcarlos12
Download Presentation

VA Loan Benefits

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Complete List of VA Loan Benefits You Can Avail As A Veteran VA mortgages are one of the best loan programs initiated by the government for the welfare of Veterans and active military members. They offer numerous benefits, give a chance of home ownership to the Veterans and are guaranteed by the government. With flexible application procedures, here’s a breakdown of the most common VA loan benefits one can avail of with VA mortgages. guidelines and streamlined Lower Interest Rates The typical interest rates for VA loans range somewhere between 0.5% — 1% less than a conventional loan. Because of these lower interest rates, the guidelines and eligibility criteria for these loans are quite flexible. Moreover, Veteran loans also provide an opportunity to reduce the interest rates even further through refinancing options like IRRRL. 0% Down Payment The reason why most people don’t go for home loans is a hefty down payment. However, with VA loan benefits, one can easily take a step towards homeownership with no down payment

  2. requirement. VA mortgages come with no limits and a borrower can opt for no down payment option even if the loan value reaches up to $450,000. No Private Mortgage Insurance (PMI) PMI is an insurance policy that the borrower pays to compensate the lenders in case he/she is not able to pay back the loan on time. Most of the conventional loans would expect the beneficiary to pay at least 20% of the total loan limit as PMI. However, the guidelines of VA loans dictate that a borrower does not need to submit any PMI for VA mortgages. This can save up to $345/month, which can account for some huge savings. Guaranteed by the Government Because the US Department of Veteran Affairs backs these loans, the lenders feel free to lend mortgages on competitive interest rates and offer more VA loan benefits like 0% down payment and no PMI requirement. Basic Allowance for Housing Basic allowance for housing (BAH) is a military privilege, open for selected active military members. BAH is counted as a beneficiary’s primary income and can be used to pay your monthly installments for the loan. This VA loan benefit is only

  3. open for some selected militants and varies on your pay grade, geographic location and number of dependants. No Pre-Payment Penalty In most cases, paying off the loan in advance results in a pre- payment penalty. This penalty acts as a compensation for lenders who missed out on the opportunity to collect interests. In the case of a Veteran loan, the borrower does not need to pay any penalty and is free to repay the amount prior to the deadline. This VA loan benefit helps borrowers save thousands of dollars.

More Related