At some point in your life, Home loans VA has helped you to buy a home. And if you are a veteran or serving in the military it can be more of a challenge compared to the folks who are not. What are your options about the Home Loans VA when you want to buy a home? Well, there’s one mortgage option specifically for the veterans: Home Loans VA.
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Home Loans VA
A home loan VA is a mortgage option that is guaranteed by private lenders and they are been backed by the U.S Department of Veterans Affairs. It helps U.S veteran’s active duty service members, and the widowed military spouses buy a home. Applying for any mortgage can sometimes be a complicated process and VA loans are no different. The guide covers the fundamentals of the VA loans and offers recommendations for the top VA lenders so you can find the best choice for your home loan.
How Does a Home VA Loan Work?
VA home loans are one of the two non-government loans available today. They don’t work as to how you want like a regular mortgage you have from the bank because VA loans are specifically guaranteed by the government. This means that the government will have to accept to pay back a portion of the loan to the bank. If you don’t pay back (defaults) or If you face losing your home (foreclosure).
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Benefits of Home Loans VA
The following are the benefits of Home Loans VA. Here are the lists below:
- There is no penalty for prepayment.
- You don’t have to pay Private Mortgage Insurance (PMI).
- There is no minimum credit score requirement.
- You can buy a home of your choice with no down payment attached to it.
- There is no limit to the amount you can borrow on the VA loan, but there is a limit to the amount of the liability the VA takes on.
- You don’t need to be a first time home buyer in order to get VA loans.
- Bankruptcy and the foreclosure won’t permanently affect your chances.
- The VA offers you the assistance for the struggling borrowers facing a potential foreclosure.
The above lists are the benefits of Home Loans VA.
Advantages of Home Loans VA
The following lists given below are the advantages of Home Loans VA
- You don’t have to buy mortgage insurance.
- You can get support from the VA.
- Cash is available for energy-efficient upgrades.
- There are no prepayment penalties.
- The VA funding fee can be financed.
- Sellers can help with closing costs.
- You could qualify with fair credit.
- You can put 0% down.
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The above are the advantages of Home Loans VA.
Disadvantages of Home Loans VA
The following lists given below are the disadvantages of Home Loans VA
- You can’t buy a fixer-upper in the major disrepair.
- You’ll pay a VA funding fee.
- They are only available for primary residences.
The above are the disadvantages of Home Loans VA.
Drawbacks of the Home Loans VA
The following are lists of drawbacks of Home loans VA.
- The lower interest rates on the VA loan funding fee between 1.25% and 3.3% of the loan amount.
- The lower interest rates on the VA loans are deceptive.
- Only certain types of properties are eligible for a VA loan.
- A VA loan can be used to buy or build a primary residence or that of refinancing an existing loan.
- The zero down payments leaves you vulnerable.
Here are the lists of drawbacks of the Home Loans VA.