VA Home Loans are one of the most popular programs offered for service members and veterans. These loans are also available to surviving spouses who qualify. A VA Home Loan makes owning a home – or improving a home – affordable to those who served. The VA does not provide the loan directly. Instead, the applicant will get a loan through a conventional mortgage broker. The loan is then insured by the government.
The great thing? Since they are insured by the federal government, a VA loan is a safe loan for a mortgage company. For this reason, you can usually get great loan rates with a VA loan, and you will not have to put down a huge downpayment.
In fact, more than 90 percent of VA Home Loans do not even require any downpayment.
The following are some benefits of VA Home Loans:
You often do not need to pay a downpayment.
You do not need to be a first-time homeowner to get a loan. This makes VA loan better than other government-insured home loans that require you to be a first-time homeowner.
You may not be required to purchase private mortgage insurance.
VA Loans have lower interest rates than conventional mortgages.
You may not need to meet a minimum credit score requirement (while not required to qualify with the VA, your lender may require a minimum credit score).
In addition to mortgages, the VA also offers refinance loans to refinance your mortgage and get a better rate. Additionally, it offers housing grants for veterans with disabilities to modify their home.