The government offers numerous unique opportunities to help veterans find their dream home. One of them is a way to take out a mortgage and loan money to build their dream home. They can either purchase it or build it from scratch. There are provisions in place to help veterans finance homes that would otherwise be unaffordable. VA loans are designed to make homeownership more affordable and accessible.
But if you want to take the full advantage of these programs, you should know a bit about them. These mortgages and loans are given out by private lenders. Therefore, it’s better if you work with veteran mortgage lenders who know the process properly.
What is a VA Mortgage Loan?
These specific types of mortgage loans are available through a program launched by the U.S. Department of Veterans Affairs. With VA loans, veterans, service members, and their surviving spouses can purchase homes with little to no down payment and no private mortgage insurance, and generally get a competitive interest rate.
These mortgages are guaranteed by the U.S. Department of Veterans Affairs but are issued by private veteran mortgage lenders. They can be used to purchase your dream house or build one.
Benefits of a VA Mortgage
The terms offered by veteran mortgage lenders are quite generous compared to those of other mortgages. Here are the benefits:
- No down payment is mandated unless required by the lender, or if the residence’s purchase price is above the established property value.
- There is no requirement for private mortgage insurance.
- Closing costs are limited and may be paid by the seller.
- There is no prepayment penalty if the borrower pays off the loan early.
- Assistance is available from the VA to help borrowers avoid default.
The VA’s only credit requirement is for the borrower to be considered a satisfactory credit risk by a lender. The benefits of a VA mortgage are similar.
Common Veteran Mortgage Lenders Facts Every Veteran Should Know
If you’re a veteran looking to get a mortgage loan for buying your dream house, here are some important facts you should know:
- There is no down payment required to get a mortgage loan for veterans. No down payment makes homeownership more accessible.
- There is also no Private Mortgage Insurance (PMI). In this way, veterans can save hundreds of dollars monthly and secure their dream house.
- Veteran mortgage lenders also provide lower interest rates as compared to conventional loans.
- There can be a one-time funding fee to help sustain the program. This can be rolled into the loan amount. But in most cases, this fee is often exempted.
- Recently, there have been some changes that have allowed borrowers to mortgage the amount they need to buy a home. The limits have been increased, but are still subject to the lender’s approval.
- Veterans can also use programs like the IRRRL (Interest Rate Reduction Refinance Loan) to lower interest rates or monthly payments. This is of great help.
- Veterans also don’t need perfect credit to qualify. VA mortgages often have more lenient requirements than other loan programs.
All these facts are important to know before applying for a mortgage to buy a house. These leniencies are given to veterans as a way to appreciate them for their service. This obviously makes buying houses much easier for them.
Best Mortgage and Money Lenders for VA Loans
Various banks and private veteran mortgage lenders are offering VA loans. Here is a list of different aspects they’re best in and their names:
- Best for customer service: Veterans United
- Best for applying online: Rocket Mortgage
- Best for bad credit: Guild Mortgage
- Best for low rates: Navy Federal Credit Union
- Best for flexible mortgage terms: First Federal Bank
- Best for no origination fees: PenFed Credit Union
- Best for in-person experience: Chase Bank
Conclusion
Veterans deserve to live a normal life, with access to proper homeownership and employment opportunities after serving. As a way to thank them for their service, VA works hard to provide them with opportunities, such as Veteran mortgage lenders. They are private lenders, but under the VA program, they offer lower interest rates, no down payments, and even a chance to lower monthly interest rates further. This is done to ensure veterans are also able to secure their dream home.
VA Loan Facts is an educational resource and mobile application designed to help military families and veterans learn about the VA Loan process and navigate it by providing education, empowerment, and guidance. To find out more, you can go to its application and read at leisure.