Benefits of an Oakland Park VA Home Loan
If you are active military personnel or a veteran, are some of the best home loans you can ever apply for. It has become increasingly difficult for military personnel to build assets and credit needed for conventional home financing.
Because of the many advantages that veterans and active military personnel stand to gain with VA Home loans, there has been a steady increase of borrowers for this kind of loan. In fact, for many in the military, VA Home loans are the only way they get to own a home.
Benefits of a home loan include:
- No Down Payment
This is by far the greatest benefits as well as the most prominent feature of a VA home loan.
When you consider that the ordinary military borrower has an average of $9,000 in assets, it becomes obvious that they might not be able to afford a 5% down payment needed for a conventional loan or even the 3.5% down payment needed for an FHA loan for a home that goes for $250,000.
No Mortgage Insurance
FHA loans require a small down payment that is, 3.5% of the home’s equity. The tradeoff, of course, is that you end up paying mortgage insurance premiums. Borrowers who qualify for a VA home loan are not required to pay any premiums on their insurance.
Great Interest Rates
Veteran Affairs guarantees some of the borrowed amounts, this makes it possible for lending institutions such as NHL Lending to offer competitive interest rates on VA home loans. To put this in perspective, if the borrower were to get a conventional loan, they might get an interest rate of 4.75% on a 30-year $250,000 loan. However, they might get a lower interest rate of 4% with a VA home loan.
This difference might not sound like much, but for a $250,000 mortgage, it might mean that the borrower will save about $40,000 during the lifetime of the loan.
The Department of Veteran Affairs does not issue loans it only oversees the loan program. Consequently, the department does not enforce credit score minimums. This is left for the lender to determine. Even then, lenders do not require a high credit score as they normally would on a conventional loan.
It is also much easier to get a VA home loan compared to other types of home loans after a foreclosure, short sale or bankruptcy.
Restrictions on Closing Costs
All mortgages including the VA home loan includes closing costs and other fees. What distinguishes a VA home loan from other types of loans is the fact that there is a limit to how much you can expect the borrower to pay for closing costs.
When you borrow a VA home loan, you can ask the seller to pay all their closing costs including and up to 4% in concessions. Even though the seller may not comply, the VA home loan borrower can still ask.
The Gift That Keeps On Giving
Most borrowers think that just because they borrowed using a VA home loan the first time, they cannot use it to borrow again. In fact, you do not even need to pay back your first VA home loan before you get another one.
If you want, you can have more than one VA loan at a time. Do you have a question regarding your Oakland Park VA home loans? Get in touch with us on 888-995-6624.
Forget Prepayment Penalties
Many borrowers realize that they stand to save a lot of money if they can pay up their mortgages before the lifetime of their home loan matures. Unfortunately, this means that lending institutions end up making losses since they miss years and years of interests.
To avoid such losses lending institutions have prepayment penalties that are targeted at borrowers who finish paying off their loans early.
Thankfully, VA home loan borrowers do not need to be concerned with early loan repayments, as there are no penalties for early payments for VA home loans.
For the longest time, VA home loans have been the safest home loan on the market.
The VA home loan program is also a dedicated advocate for veterans and has on very many occasions come through for veterans who were about to get foreclosed on. The efforts of the Veteran Affairs program have helped approximately 500,000 veterans from going through foreclosure.
With a VA home loan, you should feel safe since the program is intent on getting you to keep your home.
If you would like to know how to get an Oakland Park VA Home Loan do get in touch with our lenders at NHL Lending today.