Way back in 1944, the U.S. government initiated a military loan guaranty program to help returning service members purchase homes. The result of this is the VA Loan. It is a mortgage loan issued by approved Lenders and guaranteed by the Veterans Administration. Since 1944, the VA Loan program has helped more than 20 million veterans and their families buy a home with this uniquely affordable financing that has many distinct advantages over other, more traditional types of financing.
In today’s home buying marketplace, the VA Home Loan program is more important than ever. Since the real estate crash in 2008, the lending community has tightened their requirements. This has made the VA Loan a real life saver for many military home buyers who find tougher credit standards and down payment requirements a real challenge. So with $0 down and more flexible credit guidelines, the VA Loan offers great advantages to those who have served our Country with honor and pride.
VA home loans can be used to:
Buy a Single Family Home.
Buy a townhouse or row home.
Buy a condominium unit in a VA-approved project.
Buy new construction. If working with a Builder, they may require Construction Financing in order to complete the home. VA loans can only be used to finance completed homes.
Buy a modular home.
Buy a manufactured home with land on a permanent foundation.
Please take some time to learn more about the VA Home Loan program and its many benefits right here on our site. If you have immediate questions, please contact us today at (302)674-5540.
The VA Loan program is a truly unbeatable mortgage option for many veterans, service members and military families. The benefits and flexibility of this government-backed loan program can be the ticket to home ownership many who might otherwise struggle to obtain financing.
No Down Payment
Let’s be honest, saving money and building credit can be difficult for service members who are constantly on the move. With a VA Loan, eligible and qualified borrowers can finance 100 percent of the Sales Price of a home. It is important to know however that, when making an “offer” to buy a home, a small deposit of $500 to $1000 must accompany that offer. In most cases, that deposit can be returned at settlement!
No PMI Payments (Private Mortgage Insurance)
When it comes to Conventional loans where the buyer puts less than 20% down, the Lender requires that buyer to pay Mortgage Insurance along with their monthly payment. This helps insure the Lender against losses from Borrowers who default on their loan.
Both FHA and USDA loans require PMI payments each month as well. For example, a $200,000 purchase using an FHA loan would require a PMI payment of $136.71. This is on top of the normal payment.
The good news is VA has NO PMI payments! The savings are huge. The VA, in honor of your service, insures the loan and absorbs this risk on behalf of military buyers.
Competitive Interest Rates
You will find interest rates on VA loans to be some of the lowest in the mortgage industry. These rates are typically one quarter to one half of a percent lower than Conventional rates. When combined with No Down Payment and No PMI payments, you can see the amazing benefits of a VA Home Loan.
No Pre Payment Penalty
VA Home Loans do not have a prepayment penalty. This allows VA home loan buyers the flexibility to pay their VA loan down as quickly as they like or pay off their loan at any time. So you can refinance your VA loan when the time is right or sell your home to purchase another without fear of a penalty.
The VA Loan is specially designed or those who served and there are a handful of requirements. In order to be eligible for a VA Loan there are specific service conditions each borrower must meet.You may be eligible for a VA Home Loan if you meet one or more of the following conditions:
You may be eligible for a VA Home Loan if you meet one or more of the following conditions:
Additionally, here are some of the qualifying guidelines when it comes to the Loan itself:
Questions about whether you qualify?
Call us today and let us answer all of your questions. 302-674-5540
9 East Loockerman Street, Suite 207, Dover, DE 19901
302-674-5540
larry@delawaremortgagerates.org
DE Licensed Mortgage Broker NMLS# 205695