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Writer's pictureJuanita Madriz

The VA Loan has a lot of extra benefits.

Updated: May 16, 2022




 

Our military veterans have made significant contributions to this country. Veteran Affairs offers a unique financing offer designed exclusively for retired and current military families to make it simpler for these particular families to qualify for and purchase a property.


VA loans provide mortgage possibilities that are not available to the general population.


  • No Down Payment – In the real estate bubble of the last decade, zero-down loans disappeared. VA loans let our military buy a house without having to worry about saving for the down payment.

  • Easier to Qualify - to get a loan if you have a credit score of at least 650. If you want to qualify for a VA loan, all you need is a FICO score of at least 620.

  • No PMI – If the loan-to-value is less than 80%, you don't need private mortgage insurance.

  • Limits on Fees - VA borrowers are protected by strict rules about fees and closing costs, so they don't have to pay too much. Lenders who are financing a VA loan can't charge more than 1% for loan costs, but they can charge as much as 2.4–3% for other loans.

  • Appraisal Assistance - There are times when a home buyer doesn't get an appraiser's report that is high enough to buy the home at its agreed-upon price. This is when the VA can help by carefully reviewing the report and other properties and then asking the lender to change the appraisal if it thinks the value isn't right.


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