In securing a mortgage, you can use several loan standards in finding the perfect payment platform. Among the different loans available, VA loans are one of the most cost-friendly loans in the market. They involve lenient underwriting, impressive secondary benefits, and, above all, low payment rates.
Securing a Mortgage with VA Loans
VA loans were an initiative of the US Department of Veterans Affairs to help active-duty personnel, veterans, and other related groups secure housing at affordable costs. VA loan’s impressive zero-down mortgage option is just one of the many outstanding benefits that it offers.
In this article, we share three benefits of VA loans.
- No down payment and mortgage insurance. Although most home loan programs require a down payment to buy a home, VA loans are an exception to this rule. Instead of paying a portion of the amount from 5% to 20% of the property’s total value, a VA loan can finance you up to 100% of the real estate’s price. It allows you to purchase a home without having to put any down payment at all. Lenders usually offer mortgage insurance to home buyers who cannot give more than 20% of a property’s total value. It is known as private mortgage insurance (PMI) for conventional loans and mortgage insurance premium (MIP) for FHA loans. These insurance policies protect the lender if a buyer defaults on the loan payments. VA loans, on the other hand, don’t require this bond, which makes it an affordable loan both upfront and over time.
- Versatile options with different lenders. Although the Department of Veterans Affairs backs it, it’s not funded by the VA. What this means is that the department doesn’t set mortgage loans’ restrictions. Instead, VA loans are provided as an option by different lenders from banks, savings and loan institutions, credit unions, and mortgage lenders, each with their loan rates and fees. It allows you to have a wide selection of options in comparing loan offers from different lenders to find a VA loan that works best within your budget. Some VA loans offer fixed or adjustable rates, which can be used for different properties, ranging from condos, duplexes, and other kinds of real estate. Besides buying new real estate, you can also use a VA loan to refinance your existing mortgage for different purposes, such as home improvement projects.
- Easier process for application and transfer. Like all mortgage applications, VA loans require specific documents together with a viable credit history to ensure credibility in paying monthly payments. However, unlike other programs, VA loan guidelines can be more flexible due to the Department of Veterans Affair’s accommodation for its applicants. Its primary function is to allow eligible candidates to buy or refinance their properties effortlessly. You can also transfer your VA loan to a home buyer who is VA-eligible. The transfer-ability of assumable loans is beneficial when you’re ready to reap your investments’ fruits. If your home loan at today’s rate is expected to rise in the future, this assumption value of your VA further increases your property’s costs.
VA Loans with Desert Springs Mortgage
When it comes to buying real estate, you should always be informed of the different available loan plans. If you’re qualified for a VA loan, you should invest in securing the best payment plan possible that works with your current financial situation. The best way to get great mortgage deals is by making informed decisions backed by research on the various mortgage application processes and versatile loan plan options.
Before you commit to a mortgage deal, you should ensure that you’ve gone through all the possible options that are available to you. If you need a mortgage broker in Phoenix to help you in securing the best VA loans, get in touch with us today at (623) 432-1309, and we’ll make sure to guide you through managing your real estate’s financing!