For over 80 years, VA home loans have helped millions of veterans achieve the dream of homeownership. These loans, provided by mortgage companies like us, are backed by the Department of Veterans Affairs, allowing us to offer you more favorable terms. This makes homeownership more attainable for those who have served our country.
At Arbor Home Loans, we deeply value our veterans, which is why we’re committed to helping you understand the VA home loan program and the incredible benefits it provides.
Benefits of VA Loans:
A VA home loan offers numerous benefits designed to help veterans, active-duty service members, and eligible surviving spouses become homeowners.
- No Down Payment Required
One of the most important benefits of a VA loan is that it often requires no down payment. This can make homeownership more accessible, especially for those who may not have significant savings.
- No Private Mortgage Insurance (PMI)
Unlike conventional loans, VA loans do not require private mortgage insurance (PMI), even if you don’t make a down payment. This can save borrowers hundreds of dollars per month.
- Competitive Interest Rates
VA loans typically offer lower interest rates compared to conventional loans. This is because the government backs these loans, reducing the risk for lenders.
- Easier Qualification Standards
VA loans often have more lenient credit score requirements compared to conventional loans. This can be beneficial for borrowers with less-than-perfect credit. Learn more about the VA Mortgage Requirements.
- No Prepayment Penalty
With a VA loan, there’s no penalty for paying off the loan early. This flexibility can save borrowers money on interest over the life of the loan.
- Assumable VA Home Loan
VA loans are assumable, which means that if you sell your home, the buyer can take over your loan, provided they meet the lender’s requirements. This can be an attractive selling point.
- VA Home Loan Closing Cost Limits
The VA limits the amount of closing costs that veterans can be charged, which can help reduce out-of-pocket expenses at the time of closing.
- Support for Borrowers in Financial Trouble
The VA helps borrowers who are struggling to make their mortgage payments. They offer foreclosure avoidance counseling and can work with lenders on the borrower’s behalf.
- Funding Fee Flexibility
While VA loans do come with a funding fee, which helps sustain the program, this fee can be rolled into the loan amount, so it doesn’t have to be paid upfront. Additionally, veterans with a service-related disability may be exempt from this fee.
- Refinancing Options
VA loans offer flexible refinancing options, including the Interest Rate Reduction Refinance Loan (IRRRL), also known as a VA streamline refinance, which can lower your interest rate and monthly payments.
These VA mortgage loan benefits make the VA loan program an incredible option for those who qualify, providing financial flexibility and support to meet the needs of veterans and their families.
Bottom Line
Owning a home is the American Dream. Let Arbor Home Loans help make that dream a reality. Veterans sacrifice so much to protect our country, and one way to honor them is by making sure they know about VA loans.