The Benefits of a VA Home Loan
Hi, my name is Mike Baker, and I started this mortgage company, The Rate Shop, to provide lower interest rate options to Veterans and Active-Duty members alike. My goal is to help you conquer housing, secure wealth, and start building the American Dream.
Who Qualifies?
If you're an active-duty service member, veteran, or qualifying military spouse, a VA home loan can help you achieve the dream of homeownership. VA loans offer significant advantages that make them one of the best loan options for military borrowers. In this blog post, we’ll explore five key benefits of getting a VA mortgage.
Lower Interest Rates
VA home loans offer lower interest rates compared to conventional loans. Rates are set by lenders, but the VA guaranty reduces risk, allowing lenders to offer much lower rates. The current average VA rate is almost 1% lower than the average conventional rate. Over time, a lower rate can equate to thousands in interest savings.
No Down Payment Required
Unlike conventional loans, VA loans do not require any down payment whatsoever. This removes the main hurdle most buyers face in saving upfront funds. Active-duty buyers also don’t have to pay any upfront VA funding fees. For veterans, the funding fee is relatively low, and if you have a service-connected disability the VA Funding Fee is COMPLETELY WAIVED. Being able to get 100% financing makes VA loans much more attainable.
No Mortgage Insurance
On conventional loans with less than 20% down, borrowers have to pay private mortgage insurance (PMI), adding hundreds per month. VA loans do not charge any monthly PMI, which equates to major monthly savings. The VA funding fee can be financed into the loan.
Flexible Credit Guidelines
VA loans have more flexible credit underwriting than conventional loans. There is no minimum credit score requirement. VA focuses more on your overall financial health versus just your credit score. They can take past extenuating circumstances into account. This helps more buyers get approved.
Cash-Out Refinancing Options
A VA cash-out refinance allows you to tap home equity by refinancing into a larger mortgage. The cash can be used to consolidate debts, finance home improvements, or cover other costs. This flexibility and access to cash is harder to find with other loan programs.
VA loans are a superb financing option for eligible military borrowers. The combination of lower rates, 100% financing, lack of PMI, flexible credit, and cash-out refinancing provide significant advantages buyers would be hard pressed to find in other loans. Connect with our VA mortgage experts to start exploring your options today.
More questions?
You can book a time to chat with me (CLICK HERE), Mike Baker, a 15 year Mortgage Loan Originator who specializes in VA loans in KS and MO.
Call/Text me at 913-213-3335.
Email me at mike@theinterestrateshop.com
Complete the basic questionnaire below and I will be in touch with more info.
Want more information on using your VA benefits to potentially purchase a home?
Complete the questionnaire below and we will send you information on how to take advantage of your VA Benefits to purchase a home.
