3 Ways VA Loans Help U.S. Military Veterans Become Homeowners
If you’re a veteran or military member, then you’re in luck: You might just qualify for one of the most powerful mortgage programs out there — the VA loan.
VA loans are mortgages designed specifically for military members, and they can make becoming a homeowner infinitely easier.
Are you considering buying a house? Here are three ways a VA loan can help ease the process:
1. They reduce the upfront costs.
One of the biggest benefits of the VA mortgage program is that it requires zero down payment. Considering other mortgage options ask for 3% at minimum ($9,000 on a $300,000 house), that’s some big upfront savings right off the bat.
VA loans also have limited closing costs, and you can even have the sellers cover a big portion too. This can also help save you at the outset and make getting your foot in the door of homeownership much easier.
2. They make it easier to qualify.
The Department of Veterans Affairs doesn’t have a set credit score minimum, as other loan programs do. (On conventional loans, you can typically expect to need a score in the 600s at the very least, though FHA loans may go lower.)
If you’re still active military, you can even use your Basic Allowance for Housing (BAH) to qualify. Together, these two benefits can help lower the barrier to homeownership and potentially even help you buy a house sooner.
3. They make it more affordable.
VA mortgages don’t just save you upfront. They also don’t require private mortgage insurance like FHA loans (and many conventional loans), which saves you on both your monthly and annual mortgage costs.
Even better? VA mortgages typically come with lower interest rates (the government’s guarantee of VA loans makes them less risky, so lenders can therefore offer lower rates). These rates mean a lower monthly payment and fewer long-term interest costs.
Learn more about VA loans
If you’re considering a VA mortgage, get in touch with a loan officer with Embrace Home Loans in your area today. They can help walk you through the requirements, as well as how much you might qualify for, given your entitlement and service record.