As my regular readers know I recently purchased a new home for me and my family.  I used a VA Loan for the financing and it was wonderful.  My new mortgage payment is actually less than I was paying for a 3 bedroom apartment.  I would not have been able to buy this wonderful help without the benefit of a VA loan.  Below you will find a guest article about the benefits of a VA loan.

 
VA loans represent one of the last remaining avenues for qualified borrowers to purchase a home without a down payment. And these low-cost lending options are becoming increasingly popular as government loans continue to grab a greater share of the overall lending market.

The Veterans Administration provides qualified veterans and their families with one of the most flexible and high-impact loan programs on the market. VA home loans come with an array of financial benefits and can help veterans without sterling credit or huge incomes achieve the goal of homeownership.

The VA guarantees home loans issued by commercial lenders. That protection basically replaces the need for a down payment and often allows borrowers to obtain excellent financing rates. Government-backed loans offer lenders a degree of protection that conventional loans often lack.

VA loan recipients can also forgo monthly private mortgage insurance, which is a requirement on conventional loans for borrowers who fail to put down at least 20 percent. With a VA loan, that’s another monthly cost savings that can go toward paying down your principal.

Some other benefits of VA loans include:

# Negotiable interest rate.
# Ability to finance the VA funding fee
# Closing costs are comparable with other financing types (and may be lower).
# An assumable mortgage.
# Right to prepay without penalty.
# For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
# VA assistance to veteran borrowers in default due to temporary financial difficulty.

VA loans do have some restrictions regarding the condition of homes that can be purchased. That can be a problem in some parts of the country depending on the condition and market saturation of foreclosed properties. But VA loans can provide a lifeline for veterans and their families who have less than perfect credit.

Veterans and their families must live in the homes they plan to purchase, which means VA loans are not suitable for rental or investment purposes. The VA uses geographic lending limits that change depending on the location of your home. Currently, the VA lending limit tops out around $729,000 in most parts of the country.

To find out about more VA Loan requirements be sure to visit the VA homepage.

Related posts:

  1. Veteran’s Day Discounts
  2. Daddy Help
  3. Free Food at Chik Fil A