Benefits of VA Mortgage Loan: Everything You Need to Know

For many members of our military personnel and veterans, buying a home can be a daunting task. We witness this on a daily basis in our line of business at BrickWood Mortgage. With down payments, interest rates, and credit scores to worry about, it can be intimidating. But fortunately for our veterans, there is a tool available to them through the Department of Veterans Affairs.

The VA loan is one of the most favorable loan programs currently available. As mortgage brokers, we frequently advise our clients to take advantage of a VA loan if they qualify. It is our view that the financial advantages that conventional loans simply cannot offer may be within your grasp if you have a military history.

SC jumbo loans can be an option for those seeking to finance higher-value properties, particularly when combined with other loan types.

Eligibility Requirements of VA Loans

Before we can talk about the advantages, we must first define the qualifications. This is not a program exclusively for retired military personnel. There is a wide range of military personnel included. You qualify if you served 90 days of active duty during wartime or 181 days of active duty during peacetime.

Furthermore, members of the National Guard and the Reserve may also be eligible after six years of service. The spouse of a service member who died in the line of duty or due to a service-connected disability may also be eligible. In order for you to be eligible, however, you will need a Certificate of Eligibility (COE), which can be secured during the pre-approval process.

Chief Advantages of VA Loans

The main reason we recommend VA loans is that they require no down payment. This is the biggest challenge for many homebuyers who find that saving for a 20% down payment is the hardest part of becoming a homeowner. With VA loans, this requirement is no longer there. 

The benefits of a VA mortgage loan are numerous, making them an attractive option for those who qualify. Another one, for example, is the fact that you are not required to purchase Private Mortgage Insurance (PMI). With other loans, you are required to purchase PMI when you put down less than a 20 percent down payment. This can increase your monthly payments significantly. With VA loans, you are not required to purchase PMI.

Moreover, the rates of interest associated with VA loans are relatively low compared to conventional loans. The government guarantee eliminates the risk associated with the lender, hence enabling them to provide low-interest rates. Additionally, the credit score requirements associated with VA loans are flexible compared to conventional loans. Although a high credit score is always an added advantage, the VA loan program is quite lenient when it comes to past credit history.

If you’re wondering, what does a VA home loan cover? The answer includes a wide range of primary residences, including single-family homes, condos, and some manufactured homes.

How to Apply for a VA Loan

The process to apply for the VA loan is easy, and it is always helpful to have some direction. To begin, it is necessary to find a lender who deals with VA loans. It is not all that is required that provides this service. 

After selecting a lender, you will then require a Certificate of Eligibility. After this process, we proceed to pre-approval, where we examine your financial and credit background to establish how much you can afford. After selecting a home, the VA has a particular appraisal to conduct to ensure the home satisfies the requirements in terms of safety and sanitation. Thankfully, we help you through all these steps at BrickWood Mortgage. 

Is a VA Loan Right for You?

If you qualify as a member of the military or as a veteran, a VA loan is the best way to finance the home you wish to acquire. The fact that you do not have to pay a down payment, no PMI is required, and you get a low rate of interest, makes it a very attractive financial option.

A VA guaranteed mortgage loan offers peace of mind for both borrowers and lenders, thanks to the government backing.

We’re here to help you explore your options and navigate the process at BrickWood Mortgage. These benefits are yours for the taking because of your service to our country, and we want to help you maximize them so that you can provide for yourself and your family a safe future through homeownership. Contact us today to begin your journey towards homeownership!