What Are the Benefits of VA Loans?

What Are the Benefits of VA Loans?

It doesn’t get better than a Veterans Administration (VA) mortgage — if you can qualify for one. Reserved for military members, veterans, and their spouses, these mortgages come with serious benefits.

Are you or your spouse a military member or veteran? Here are just a few of the reasons you may want to consider a VA mortgage loan:

1. They require no down payment (in most instances).

Perhaps the biggest advantage of VA loans is that they don’t require a down payment. That means you need less saved up to buy a home (or maybe you can even buy a home sooner than you thought!

2. They don’t require monthly mortgage insurance.

VA loans are one of the few mortgage options that don’t require monthly mortgage insurance. With FHA loans, for example, you’ll pay both an upfront mortgage insurance premium and an annual one — spread out across your monthly payments.

3. There are seller concessions for closing costs.

This can help reduce the out-of-pocket costs that VA homebuyers pay upfront.

4. They can be assumable. 

VA loans can also be assumable in some instances, meaning another borrower can take over the loan when they buy the house. This can be beneficial as a buyer, especially if the existing homeowner has favorable loan terms. It could also help make the home more marketable when you’re ready to sell if the buyer is able to assume a lower rate in a market where rates are higher.

Are you considering a VA loan for your home purchase? Want to learn more? Get in touch with an Embrace loan specialist today.

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By Aly Yale / July 22nd, 2020 / Categories: , / Tags: , ,

Aly Yale

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at AlyJYale.com or on Twitter at @AlyJwriter.