Advantages of a VA Home Loan in 2017

1. Advantages of a VA Home Loan in 2017 Many people will be looking for a new home within the next year. However, when buying a new home, you will probably need to obtain a loan to finance the purchase. One type of home loan that is available is a VA loan. There are numerous VA loan advantages in 2017. VA Loan Advantages What is a VA Loan? Veterans Affairs mortgages, known as the VA, are becoming increasingly more popular. These loans are offered to people who are actively serving in the military or individuals who are military veterans. The mortgage is backed by the United States government and they are funded by private lenders. Now is a very good time to buy a home or refinance an existing mortgage with a VA loan. Eligibility for a VA Loan One of the advantages of VA home loans in 2017 is that the requirements are more lenient than with other types of home loans. ***The VA looks at the big picture not just your credit score. And, although there is no established minimum score requirement, lenders do like for you to have a credit score of at least 620. Another benefit is that mortgage insurance is not required. For qualification purposes, you must be a member of the US military, a veteran, a reservist, or a member of the National Guard. If you are a spouse of a service member who lost his or her life while on active duty, you might also be eligible. You will need to provide proof that you can repay the loan. The loan must be used on your primary residence; it cannot be used to finance a vacation home.

2. VA Loan Advantages A major advantage of a VA home loan in 2017 is that you are not required to make a down payment. This can save you money. Most other types of loans require a 20% down payment. In addition to no down payment, you can qualify for the loan even if bankruptcy is in your history. VA loans will offer you the most competitive interest rates in the market and, because it is backed by the VA, the loan is less risky for lenders. You can also pay off the mortgage at any time without a prepayment penalty. Another big advantage of a VA home loan in 2017 is that there are limits on closing costs. Some of the fees must be paid by other parties. Furthermore, the costs that you are required to pay can be rolled into the loan, so you do not need to bring any money with you at the closing. You are not required to repay the loan in full to be able to obtain another VA loan. The year 2017 will be a great year in the mortgage industry. You can apply for a VA loan confident that your mortgage will have the benefits you deserve. You can then enjoy the privileges that come with home ownership.