Here is one loan officer’s Top 5 list of reasons why veterans enjoy the VA loan.
- I have helped hundreds of veterans either refinance or purchase homes using their eligibility. I think the main attraction to my clients is low interest rates. Government insured loans on average our more competitively priced than conventional. In the last year we have seen rates as low as 4.25% fixed.
- No mortgage insurance, unless you have a loan that is under 80% of the appraised value, you will pay PMI (premium mortgage insurance). this is not the case on a VA insured loan, VA homeowners do NOT pay PMI no matter what your loan to value is.
- The ability to do a streamline refinance on a VA loan is a great sense of security, knowing you can refinance if rates drop without income qualifying and even more important no appraisal, this means if home values drop in your area you can take advantage of current market rates.
- 100 percent financing, With today’s struggling economy and banks tightening their lending criteria it is nice to know you can experience the American dream of owning a home with no money down.
- Another great component of the VA loan is the fact it’s an assumable loan, this can be great help when selling your house.
