8 Reasons to Get Your VA Home Loan in 2019

VA home loans, backed by the Department of Veterans Affairs, aim to help active military personnel and veterans become homeowners at an affordable cost.

With their low mortgage rates, tolerant underwriting, and secondary benefits, the VA loan stands out as one of the best possible paths to home ownership. The loan requires no mortgage insurance or down payment, and it has very lenient guidelines for qualification compared to other options.

Here’s a quick recap of the 8 best reasons why, if you qualify and you’re in the market for a home, you should get a VA home loan in 2019.

1. Government Guarantee

The federal government guarantees the lender that a portion of the loan will be repaid even if you become unable to make monthly payments. That’s one of the biggest reasons that VA loans have such favorable rates and flexible qualifications.

Backed with the government guarantee, most military servicemembers and veterans are going to look like good borrowers to a lender.

2. No Pre-Payment Penalty

A VA loan won’t restrict your right to sell your home if you decide to do so. There’s no pre-payment penalty, early-exit fee, or any similar restriction on selling.

There also are no restrictions on refinancing a VA loan. You can refinance your existing VA loan into another VA loan or switch into a non-VA loan at any time.

3. No Down Payment

Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception.

Rather than paying 5, 10, 20 percent or more of the home’s purchase price upfront in cash, with a VA loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity.

4. No Mortgage Insurance

Typically, lenders require you to pay for mortgage insurance if you make a down payment that’s less than 20 percent. This insurance, which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan.

VA loans require neither a down payment nor mortgage insurance. That makes this a VA-backed mortgage very affordable upfront and over time.

5. Comparison Shopping

VA loans are neither originated nor funded by the VA. Furthermore, mortgage rates for VA loans aren’t set by the VA itself. Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions and mortgage lenders — each of which sets its own VA loan rates and fees.

This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.

6. Easy Qualification

Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guaranty.

The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance.

7. Plenty of Variety

A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties.

Or, it can be used to refinance your existing mortgage, make repairs or improvements to your home, or make your home more energy efficient. The choices are yours. A VA-approved lender can help you decide.

8. Low Closing Costs

The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else.

Talk with a Military and Veteran Home Buying Expert

Are you a veteran or active military servicemember thinking about buying a home in the Charleston area in 2019? We can help you take advantage of all the benefits of a VA home loan.

Text or call Charleston Welcome Home Real Estate at 843-793-4023 to speak with a Military Relocation Specialist about your goals.

Or you can visit the Charleston Welcome Home real estate search tool to begin your search for a new home.