This is a guest post provided by Chris Birk, the Content Development Director for Veterans United Home Loans, the featured writer for VA Loans Insider and author of The Book on VA Loans: An Essential Guide to Maximizing Your Home Loan Benefits. Connect with Chris on Facebook at VA Loans Insider or on Google+.
Why VA Loans Are Right For You
In recent years, obtaining an affordable mortgage has become more difficult – often restricting potential homeowners to loans with high interest rates and heavy restrictions or forcing them to simply keep renting. Luckily for service members and their families, the VA home loan still remains one of the best lending options available to them, and has remained so for a number of reasons.
Benefits of Choosing a VA Loan
There is no denying that lending requirements have become stricter over the last couple of years. In fact, they’ve become so strict that it is nearly impossible to obtain a conventional loan without a 20 percent down payment and a credit score of at least 700 – a feat very few interested homebuyers are able to achieve.
VA home loans on the other hand still remain one of the most accessible and stable lending options available to military members and their families. In fact, 80 percent of all military members who obtain a VA home loan would not have been able to secure conventional financing. A few perks to choosing this home financing option include:
- No down payment required
- Mortgage comes with no required PMI (Private Mortgage Insurance)
- No penalties for early repayment
- High loan limits are available
- Competitive interest rates
For families, the lack of a required down payment and the high loan limits are exceptional benefits. The former allows families to keep money saved elsewhere – such as college savings accounts or rainy day funds, and latter allows families to purchase the home they need without having to seek additional financing and thus, taking on an additional monthly payment.
Another perk to choosing a VA home loan is the versatility they offer mortgage holders or interested homebuyers. Interested military borrowers don’t have to use a VA mortgage simply to purchase a home. With VA loan versatility current mortgage holders and interested borrowers can:
- Purchase a primary residence
- Refinance a current loan to obtain a lower interest rate
- Update or renovate a current residence
- Buy a non-working farm residence
The VA home loan is specifically designed to make homeownership more affordable and accessible to veterans and their families, and to also help them maintain that homeownership once achieved. With its lenient requirements and flexible loan terms, there really isn’t a better lending option available.
For more information, check out these helpful guides on VA loans .