Military family in front of home purchased with VA mortgage

Why VA Mortgages Are The Best Financing Option By Far

All veterans who have met time and service and do not have a dishonorable discharge qualify for VA mortgages.  This option is the best for all active duty and veterans when it comes to buying a home for many reasons. 

The first thing that you need to realize is that you have earned it and that it never expires.  No matter if you are currently serving or if you were discharged thirty years ago. Also, your housing allowance can go toward paying your mortgage payment so you are building equity instead of just paying rent each month.   

VA mortgages are available from ever lender and it is insured by the VA. However, it is up to each institution to decide whether they will offer it as a financing option.   

Five major advantages of VA mortgages over conventional or FHA that you should be aware of are:
  1. There is no down payment; you earned this privilege.  It does not make you a weak borrower. This is a savings of $1,000s, so do not let anyone talk you out of it.  
  2. No PMI. Because the VA insures the loan there is no need for you to pay for insurance against a default. This can save you $100-$200 a month. 
  3. Most lenient credit underwriting.  The bank that you are going through for financing may place additional underwriting requirements on the loan however so find out upfront. 
  4. VA loans offer the lowest interest rates for financing, again saving you money each month. 
  5. Limited closing costs; the VA caps all closing costs to 1% of the loan amount. You will want to find a lender who’s origination charge is based on the collective method.  This method will allow you to have funds to pay for the title, survey, inspections, and any other fees involved in closing your loan as all fees together won’t exceed 1%. 

In addition, your VA loan benefits can be used over and over again.  In fact, you can have two VA mortgages at one time. And if you have a 10% or higher disability rating, you are also exempt from paying the VA funding fee.  With the passing of the Blue Water Navy Vietnam Veterans Act of 2019, Purple Heart recipients will also be exempt as of 1-1-2020.  Otherwise, you can finance it into the loan or pay it upfront. 

Each financial institution is different, so do your due diligence and work with one that is military friendly.  You can connect with VA loan specialist here on www.report-to-base.com/va-loan or you can contact us for help.  We want to make sure that you are getting all of the benefits that you deserve. 

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