There are a number of reasons why individuals choose to enlist in the military. For many, serving their country is the honorable thing to do, and the government offers individuals at various service ranks incentives for serving their country. Individuals who aspire to own their own homes someday might benefit from serving in the military. Of course, no one should enlist in the military for the sole purpose of favorable odds of becoming a homeowner someday. However, it is a wise idea to know that if you have served or anticipate serving in the military, you could qualify for a VA loan. The following points identify the benefits of choosing a VA mortgage loan if you qualify.
No Down Payment
Other mortgage packages require a down payment. The percentage that is required for the down payment will depend on a number of factors. Credit is a key factor in the decision. A VA loan does not require a down payment. This "frees up" capital to use for other things related to the home-buying process such as upgrades to a previously occupied home.
Closing Costs Limits
The closing costs on traditional mortgages can be high. The government places a cap on how much the closing costs on a VA loan can be. It is important to keep in mind that closing costs are one of the costs associated with buying a home that can be negotiated with the seller. It is possible to negotiate the closing costs to be absorbed by the seller.
Lifetime Usage
The VA loan program is one that is available to qualifying individuals and their spouses for a lifetime. It can be used to buy multiple homes. The financial product can also be used simultaneously, meaning that qualifying individuals can have more than one VA mortgage loan at a time.
No Mortgage Insurance
Some traditional mortgages require private mortgage insurance, which is referred to as PMI. The federal government backs VA loans and does not require insurance. This is an attractive incentive because it eliminates some of the costs of homeownership.
Keep in mind that VA mortgage loans are loans that are specifically available to qualifying individuals who have served in the military. Spouses may also take advantage of these loans. They are an attractive financial product in the eyes of lenders because there is less risk of default. The U.S. Department of Veteran Affairs backs these loans and ensures that if there is a default, the lender will be paid.
Reach out to a company like Dominion Capital Mortgage for more information on VA loans.
Share25 May 2021
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