What are the financing benefits of the VA home loan program? How do they compare to other mortgages out there? Can anyone take advantage of them?
The VA program for buying a house has considerable benefits when compared to other mortgages offered out there.
Let's just compare it with the FHA
loan products, which are designed as a loan for families to buy one to
four bedroom homes. FHA is an awesome program too so let's compare them.
Let's take a look at the FHA benefits first.
As you can see, those are pretty cool advantages. One of the limitations is you need to be a first home buyer to qualify. The cool thing is you can become a first time buyer again. You just cannot have owned a home for three years to re-qualify as a first buyer.
Now let's consider the VA program.
Both of these options have considerable financing benefits in comparison to many other open-market financing options; but the VA program is clearly superior and offer some cool advantages.
Unfortunately, not everyone can use this awesome program. You must be a veteran to qualify. But let's take a closer look at this arrangement.
The biggest of these is that potentially a veteran and his family can buy a home without the need for a down payment, whereas FHA loans require a minimum down payment of 3.5%.
This doesn't sound like a lot, but consider for a moment that the average median sales price for a home in the Bronx in New York for example was $366,010 in November 2011, and so 3.5% of that is $12,810 that would have had to be found as a down payment. And as the exact same story is repeated right across the country, it immediately becomes clear why NOT having to pay that is a big advantage.
In addition, the VA home loan program is automatically available to ALL eligible veterans, and the nature of the way it works means that it is very attractive for lenders to loan money to veterans to purchase homes under this scheme.
And if you have ever previously been foreclosed on, or suffered a bankruptcy, then the terms of the VA Mortgage Loans scheme are quite simply the most lenient around.
Both schemes are potentially useful, but if you are a veteran (or a veteran's wife) and are eligible, then you should certainly look more closely at the financing benefits of VA Mortgage Loans.
If you have any questions on these financing benefits for a VA loan, don't hesitate to ask it here.
Remember, even for a VA loan you need to make sure to have good credit.
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