VA Loans Blog

Top10 Reasons VA Loans Are Best

March 10th, 2017 10:02 AM by Joan Rusco

We encourage clients to take time to consider options when it comes to buying or refinancing a home. At VALoansMN we strive to provide good information so you can make the best decision for you and your family. Here’s a quick list of reasons to use your VA Loan benefit.

1. No down payment on a VA Loan

Other home loan programs require at least a small down payment. Your VA loan is an exception.

2. You can shop and compare loans

Mortgage rates are not set by the Veterans Administration. The VA does not originate the loan. These loans come from banks, credit unions and mortgage lenders. At VALoansMN we shop rates for you and will offer you the best rate for your budget.

3. VA Loans have a government guarantee

The federal government guarantees a portion of the loan will be repaid to the lender even if you are unable to make your monthly payments. This enables lenders to offer a VA loan at very attractive rates.

4. No mortgage insurance

When a borrower has less than a 20% down payment other loans require the borrower to also pay monthly mortgage insurance. This can add hundreds of dollars to your payment. VA loans require neither a down payment or mortgage insurance.

5. Easier to qualify for a VA loan

Compared to other loans VA loan guidelines are more flexible. There are requirements for documentation, acceptable credit history and income needs but since the VA loan is guaranteed by the government this gives lenders more flexibility.

6. Choices in payment of the Funding Fee

The funding fee is an upfront cost based on the loan amount but the VA allows this upfront fee to be financed into the loan so you have no out-of-pocket expense unless you choose to.

7. Lower closing costs

Lenders are limited by the VA on the closing costs they can charge. This is yet another way these loans are more affordable than conventional or FHA loans.

8. Loan Variety

A VA loan can have a fixed or adjustable rate. You can use your VA loan to buy a house, a condo, new-built home or even a manufactured home.

9. No Prepayment Penalty

A VA loan does not restrict your ability to sell your home if you no longer want to own it. There’s no prepayment penalty or early exit fees with a VA loan.

10. VA loans are Assumable

An assumable loan means you can transfer your VA loan to a future home buyer that is also VA eligible.

These are ten good reasons to call us at VALoansMN and let us put these great features to work for you.


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