Are you a Veteran or Servicemember? A member if the National Guard or in the Reserves? Military homebuyers can greatly benefit from VA loans. These loans are provided through banks and mortgage companies just like our recommended lender. However, VA guarantees a portion of the loan so that you get more favorable terms.
Here are some key elements of using a VA loan to purchase your new Main Street Home and some benefits you may not know about!
1. Reusable! Even if you’ve had a VA loan on a home in the past, you can use your full entitlement again. You can use it as many times as you want as long as the previous loans have been paid off.
2. Perfect for new homes. If you’re looking to start a farm, buy a fixer-upper or find a vacation home then a VA loan may not fit the bill. But for military home buyers looking for a primary resident, single-family home in move-in condition, you’re in luck!
3. No down payment! As long as the sales price of your new home does not exceed the appraised value, no down payment is required.
4. No mortgage insurance. That’s right! No PMI (private mortgage insurance) premium required. This additional monthly fee is generally required with other loan programs unless you are putting 20% down. The VA guarantee eliminates that need for VA loans so military home buyers can save even more money!
5. Make extra payments without penalty. If you want to pay-off your loan early, go ahead! You can save thousands over the life of your loan just by paying a little extra each month. With VA loans there is no pre-payment penalty.
If you think you’re eligible for a VA Loan, visit the Department of Veterans Affairs website for the most up to date rules and regulations. We would also be happy to talk with you about these benefits! Maybe you’ve been waiting for the right time to use your VA entitlement? More than 530,000 military homebuyers obtained a VA backed loan in 2012, make 2013 the year you join them!