Statistics indicate that there are 21 million veterans and servicemembers in the United States today. Unfortunately, only 6% of those have managed to purchase a home via the VA home loans program in the last 5 years. No doubt that number could be much higher.
Eligible veterans usually avoid taking a mortgage using the VA home loan program for a number of reasons. One of these is that they are not aware of the many benefits they stand to gain from by applying for a VA home loan.
If you live in the Davie area and are not fully aware of some of the benefits that come with a VA home loan, here’s your chance to learn everything you need to about Davie VA home loan.
No Down Payment
This is no doubt the biggest benefit of qualifying for a Davie VA home loan. Most conventional loan programs require borrowers to make a down payment (usually 20%) which is beyond the reach of many people as it can range between $12,500 and $250,000.
Thankfully with a VA home loan, you don’t have to wait years before you have enough savings to make a down payment.
The minimum down payment you can expect to make with conventional loans is 3.5%. If the borrower’s down payment is not 20% or higher, lenders will usually require the borrower to get private mortgage insurance which adds to the cost of the mortgage. This though is not the case with a VA home loan.
Since the VA backs this loan program, the lender’s risk is reduced consequently negating the need for private mortgage insurance whose purpose is to reduce the lender’s risk.
The VA home loan program is not a one-off benefit. A borrower can make use of it time and again.
Let us say for instance, a borrower has bought a home using a VA home loan. However, the borrower has since outgrown that particular house and is looking for something bigger. Once the first home is sold and the VA loan completely paid off, the borrower can re-use their VA home loan benefit to purchase another home.
That however is just one way to reuse your benefit.
Eligible servicepersons and veterans are eligible to receive a restoration just once, after they are through paying off their VA home loans. This also applies if the borrower has refinanced the VA mortgage with a non-VA loan. Click here to read about benefits of VA Home Loans.
Benefit Never Expires
VA home loan eligibility is perpetual, that means you will always qualify for a VA home loan. Sometimes, borrowers who served their country as many as 50 years ago are often not sure of whether they still qualify. The simple answer is yes.
To find out if a borrower is eligible, they should obtain a DD Form 214 and bring it to Kloze, with it we will be able to request your VA certificate of Eligibility.
According to figures on VA’s own site, in 2015 over 3,000 surviving spouses were able to buy a house using a fallen partner’s benefits. They are also exempt from the VA funding fee.
This benefit helps the spouses move forward with their tragedy even though there is really no way to repay them.
VA home loan rates are usually lower than those on conventional loans. Typically they are about 0.25% lower. VA loans have lower rates because they are seen to be less riskier than other types of loans since they are backed by the U.S Department of Veteran Affairs.
In addition, VA loans have some of the lowest defaulters of any type of loan hence the risk is considered to be lower for lenders.
Available from local lenders
Unlike other benefits offered by the VA, Davie VA home loans are available from private lenders. The only role that the U.S Department of Veteran Affairs plays is to guarantee the loan, however, all other aspects of the VA home loan are taken care of by the lender. That is,
- Loan approvals
- Loan applications
- Funds disbursement
The VA offers a guarantee to lenders that in the event the borrower defaults on their mortgage, the VA will step in and clear the balance.
A borrower can use the VA loan for other reasons other than buying a home such as refinancing an existing mortgage.
Homeowners who already have taken a VA loan, can take advantage of the Interest Rate Reduction Refinancing Loan in order to lower their payment and rate without bank statements, W2s, paystubs, or even an appraisal.
A borrower does not need to have a VA home loan before using the Davie VA home loan program to refinance their existing mortgage. There is a VA cash-out loan that is available to eligible borrowers. The cash-out loan can be used to turn your home’s equity into cash.