Having used the VA Home Loan Guaranty program several times, I thought it might be a good idea to share some things I have learned that could help you decide if a VA loan is right for you.
The following is a quick list of reasons why a VA loan may be your best option:
- No down payment requirement.
- VA funding fee may be financed in the loan.
- VA Loans do not require perfect credit – there is no credit score cut-off.
- VA funding fees may be waived for veterans with VA rated service-connected disabilities and surviving spouses of veterans with service-connected disabilities.
- Closing costs may be shared between the buyer and lender.
- Flexible mortgage types – fixed, hybrid and traditional ARMs.
- No mortgage insurance premiums – this is huge in today’s housing market.
- VA guarantied mortgages are assumable.
- No pre-payment penalties.
- Homes are inspected and appraised by VA prior to approval and/or during construction.
- VA can offer assistance to veteran borrowers in default due to temporary financial difficulty.
- Refinance and Interest Rate Reduction loans are available.
All in all, the pros far outweigh the cons. And, considering there are very few "no-downpayment" mortgage options around that offer lower associated fees, using your VA Home Loan benefit seems like a no-brainer - as long as the red tape doesn't scare you.