With interest rates remaining steady at all-time lows and a housing market that has seen below-market prices in most areas, now is a great time for servicemembers to purchase a home or refinance their existing home and take advantage of the benefits of a VA loan.
So, what are the benefits of a VA loan?
- It is available for active-duty servicemembers, veterans and some surviving spouses
- It can be used to purchase an existing home, build a new home or refinance an existing mortgage
- For the purchase of a new home, a down payment is not required – it is possible to finance 100% of the purchase price
- For the refinance of an existing VA mortgage, borrowers can refinance to a lower interest rate VA loan (VA to VA loan) without having to re-qualify by taking advantage of the VA Streamline Refinance Loan Program (IRRRL)
- If the borrower/purchaser can provide proof from the VA of a service-related disability, the VA funding fee may be waived by the lender
- There is no form of mortgage insurance premiums that are paid during the course of the loan, unlike FHA loans or some conventional mortgages
- While conventional mortgages guarantee the best interest rates for borrowers with a credit score of 720 or higher, a VA loan will not be denied to a borrower nor will a higher interest rate be charged based solely on a low credit score
Now is the time to take advantage of this government-backed loan program and low interests rates to buy the home of your dreams!