Benefits of a VA Loan
Why you should take advantage of a VA loan?
VA Loans are offered as a benefit to service members, veterans, reservists and their spouses to assist in buying a new home, home repair and even making a home more energy efficient. These home loan guarantees are designed to help service members move toward the next step in their life.
VA loans can be used for any of the following:
- Buy or build a home
- Buy a residential condominium
- Buy a residential cooperative housing unit
- Repair, alter or improve a residence
- Refinance an existing home loan
- Buy a manufactured home and/or lot
- Fund energy-efficient home improvements
The major benefits of a VA Loan
Not only do VA loans protect lenders from any loss if a borrower fails to repay the loan, but they also provide many benefits to the service members.
VA loans make the loan process easier for service members by:
- Eliminating the need for a down payment
- Eliminating the need to purchase private mortgage insurance
- Limits the amount a servicemember can be charged for closing costs
- Some closing costs may even be paid by the seller
- Lenders cannot charge a penalty for paying off a loan early
- Provides some assistance if a borrower struggles to make payments
The benefits of a VA loan are designed to remove some of the stress and difficulty service members and veterans have when trying to purchase a home for their family.