If you ask any twenty Veterans whether they want to own their own homes someday, chances are all of them will say yes. But statistically, only one of them has used a benefit that makes home buying unbelievably easier.
The Veteran’s home loan program began in 1944 as a “thank you” to service members returning from World War II. Since then, millions of current and former military personnel have purchased homes with no down paymen...t and easier qualifying terms.
But data from the past five years reveals that 94% of Veterans have bypassed this benefit. Veterans who use this loan program have access to 5 advantages that make Veteran loans hands down the best loan product out there.
1. No Down Payment. Most loan programs require at least 3% down and as much as 20%. But a VA loan requires no down payment whatsoever. This saves Veterans years of scrimping and saving prior to buying a home. Down Payment Assistance programs for Veterans are available - a grant that never has to be paid back for use on your down payment.
2. No Mortgage Insurance. Most home buyers pay hundreds of dollars per month in mortgage insurance if they make a down payment of less than 20%. Veterans who use a VA home loan do not pay PMI so they buy more house with less money.
3. Less-than-Perfect Credit OK. The non-Veteran home buyer often needs stellar credit to buy a home. This isn’t the case for Veterans. Credit score minimums are much easier to reach.
Tip: Many Veterans assume they are not eligible for their home buying benefit. But the minimum service requirement is between 90 days and 2 years for most Veterans
4. Lower Rates. Veteran home loan interest rates are about 0.25% lower than rates for conventional loans, according to a recent lender survey. Veteran home buyers will likely end up paying less in interest compared to the average home buyer.
5. Closing Cost Reduction. Veteran home loans come with limits on how much you can be charged in loan fees. These loans come with built-in protections for Veterans.