As a service member or veteran, it's important to understand all of your available benefits. One benefit that can make home ownership a reality is the VA loan program. The VA loan program helps former and existing service members qualify for a mortgage. Here are just a few of the reasons you should use a VA mortgage to buy your home.
1. You Can Keep More Money in Your Bank Account
One of the top advantages of the VA home mortgage is that enables you to purchase a home with no money down. This means that you won't have to delay your dreams of owning a home so that you can save up ample funds for a down payment.
Assume you want to buy a home that costs $250,000. Even if you only make a down payment of 10 percent, this means that you have to save $25,000. It takes most individuals years to save this much money.
You'll also be able to keep your hard-earned money in your bank account instead of having to use it as a down payment. When you close on your new home, you'll have more free money to use to decorate and purchase furnishings so that you can make your new space a reflection of your tastes.
2. Past Credit Woes Won't Keep You From Owning a Home
Another important detail of the VA loan program is that it has less strict credit requirements than conventional mortgage programs. This means that past mishaps, like making late payments or defaulting on a loan, won't keep you from owning a home.
Each lender that issues VA mortgages sets its own credit standards. Since the federal government guarantees repayment of a portion of the mortgage if you default, this makes it possible for the program lender to permit lower credit scores than they would for comparable loans.
3. A VA Loan Gives You Options If You Need to Move
If you have to move due, a VA loan has multiple advantages over other home mortgages. It's possible for another service member or veteran to assume your home loan. If your mortgage has attractive terms, this can be a strong selling point for your property.
You may decide that you want to hold on to your old home as a rental. The VA loan program allows you to have more than one mortgage as long as you have enough "entitlement" left over.
Your entitlement amount is how much of the loan the federal government will back. This figure is used to help calculate your max loan amount. If you don't use all of your entitlement for your first home, you can use the remainder to take out another mortgage. For more information, contact a financing company that offers VA mortgage loans.
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