The VA loan program is administered by the Department of Veterans Affairs (VA) and is available to both active duty and former members of the armed forces who have served in the US Military, and in some cases their surviving spouses.
One of the best benefits of VA loans is that they do not require a down payment, so veterans and military personnel can use their equity to purchase a home without putting down a large lump sum. Additionally, VA loans offer relaxed qualifying standards including lower credit score requirements, which helps those on a tighter budget become homeowners sooner than they might have otherwise. VA loans also tend to have lower closing costs than their non-VA counterparts, making them more affordable for buyers. Finally, VA loans come with a streamlined approval process that is designed to speed up the time it takes to get approved.
In addition to the above mentioned benefits, VA loans are also a good choice for veterans and military personnel who need help with the cost of repairs, renovations or other expenses after purchasing a home. VA loans offer various funding options such as Energy-Efficient Mortgages and Adapted Housing Grants that provide financial assistance to service members and/or their families for necessary repairs and improvements.
Another big benefit of VA loans is the protection from foreclosure. If the borrower is unable to make their payments due to extended illness, job loss, or other reasons, the VA will guarantee up to 25% of the value of the loan to the lender, allowing the service member to keep their home.
Finally, VA loans often have the most favorable interest rates, meaning that borrowers can save a significant amount of money over the life of the loan. This is especially true for those who qualify for a VA loan within 90 days of their initial application date, as VA loans issued within this period receive more preferential terms.
Overall, the VA Home Loan program is an excellent option for veterans and active military personnel wishing to purchase a home. The program offers a wide range of benefits including no down payment requirements, relaxed qualification criteria, streamlined approval processes, funding options for necessary repairs or renovations, protection from foreclosure, and the most competitive interest rates.
This article was contributed on Nov 01, 2023