9 Key Benefits of Using A VA Loan
Are you a veteran looking to purchase your dream home or refinance? You have come to the right place. We are Globe and Anchor Mortgage, a team of Granada Hills VA loan experts who have helped dozens of veteran and military families. Hover below to discover the 9 key benefits to using a VA loan.
1. Zero Downpayment
That’s right 0 down payment upfront for qualified veteran home buyers. Many people consider this the best VA loan benefit. Having sufficient funds for the downpayment can be a big burden. FHA and Conventional rate fluctuate and can add up to thousands of extra costs. FHA rates fluctuate around 3.5% and Conventional loans can be anywhere up towards a 5% rate.
2. Zero Private Mortgage Insurance (PMI) Payments
Private Mortgage Insurance, also known as PMI is what is required with most FHA and conventional loans every month unless there has been a 20% down payment. With a VA loan, no PMI payments are required for all eligible candidates. This can save the home buyers hundreds of dollars each month.
3. No Prepayment Fee
With a VA loan, you will not be charged for any early payments towards your loan payment. All the savings you had with zero down payment and PMI payments can be used to pay off your loan quicker than estimated. This is why our team of Granada Hills VA loan specialists highly recommend you always check to see if you are eligible for a VA loan if you served or have family who served in the military.
4. Lower Interest Rates
Not surprisingly VA loans tend to have lower rates compared to FHA and conventional loans. VA loans rates vary but can be as low as 1.25%. FHA and conventional loans typically start as low as 3.5 % and can reach 5% or more.
5. Second Tier Entitlement Options
Second-tier entitlement grants the ability to qualified veterans the ability to have two VA loans. Even though veterans may have used loan benefits, VA financing allows them to use remaining loan amounts.
6. Avoid Foreclosure
With a VA loan, avoiding foreclosure is always a primary goal. The goal by our Granada Hills VA loan staff is always to try and find other options to foreclosing. Alternatives can include loan modification, change of repayment plan, forbearance, plus more.
7. Closing Cost Limitations
Closing cost limitations allows anyone with a VA loan to control closing costs. Closing costs can be paid off and in a controlled rate.
8. Assumable Loan
Another VA loan benefit is the ability to have someone take over a mortgage payment. During this process, the other person comes in and take over your mortgage payment and interest rate. This can be a benefit to the VA loan with fluctuating rates.
9. Refinance Benefits
One of the VA loan refinancing options includes the ability to lower a monthly interest rate. Additionally, anyone who did not sign up for a VA loan and qualifies can transfer their loan to VA.
About Globe and Anchor Mortgage
Globe and Anchor Mortgage is a veteran-led Granada Hills VA loan agency in the heart of the San Fernando Valley. Having helped dozens of veteran and active military families they know all about VA benefits and how to save you money. If you have any questions regarding VA loans, be sure to contact us for a free consultation or check our website www.globeandanchormortgage.com for more information.