Benefits of VA Loans

VA Home Loans

These loans are for eligible service-members and veterans, and carry a number of benefits (such as no down payment) that make them far more appealing than conventional loans in most cases for those who qualify.

Benefits of a VA Loan

The biggest benefit of a VA loan, for many borrowers, is that there is no need for a down payment (the portion of the home purchase price which the buyer pays in cash and does not finance). There aren't many loan types that don't require a down payment, and VA is one of them. There is no need to pay Private Mortgage Insurance (PMI) or arrange for a "piggyback" mortgage to cover your down payment. Another significant benefit of a VA home loan is the competitive interest rate. Many times with a lower down payment, the interest rate will increase. But VA loans don't have that problem!

Made Possible by VA Guarantees

The zero-down payment and competitive interest rate benefits are made possible because VA loans are partially guaranteed and subsidized by the government. Government-backed loans protect lenders in the case that a borrower defaults on their home loan. In turn, we can provide lower interest rates to borrowers, thus allowing them to have a better homeownership experience. This also gives our veterans and service member's flexibility to purchase their dream home without worry of how to pay for it.

What Can You Do With a VA Loan?

Specifically, a VA home loan can help veterans:

• Buy a home or residential condominium
• Build a home
• Repair, alter or improve a home
• Refinance an existing home loan
• Buy a manufactured home with or without a lot
• Buy and improve a manufactured home lot
• Add energy-efficient improvements to a home
• Purchase and improve a home simultaneously with energy efficient improvements
• Refinance an existing VA loan to reduce the interest rate
• Refinance a manufactured home loan to acquire a lot

VA Loan Limits for 2018

If you want to purchase a home, condominium or manufactured home, the VA can guarantee up to the conforming loan limit of the total loan - with additional benefits such as no down payment and no private mortgage insurance (PMI). The limit varies each year and can be higher in counties where the median home value is greater. If you are considering refinancing an existing loan, VA offers you two options. You can either refinance to reduce your current interest rate (known as a "streamline loan" or "Interest Rate Reduction Refinancing Loan (IRRRL)" or you can take equity out (a "cash-out" loan). You can obtain a VA cash out loan for up to 100 percent of your home's value.

Do You Qualify?

For many, the choice of a VA loan over a conventional mortgage or paying rent to a landlord is a no-brainer. Fill out the form below, or contact us to find out if you qualify now - there are no obligations and you'll find out if a VA loan is right for your dream home.