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Benefits of a VA Loan

Veteran Holding Home in Hands

A VA Loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs. Since its creation in 1944, the VA Loan Program has helped more than 22 million veterans, service members, and eligible surviving spouses become homeowners. VA loans may be used to purchase a home or condo, build a home, refinance an existing home loan, and make improvements to a home such as energy conservation measures like solar panels. 

Frederick Allard recommends getting one pre-approval with a reputable firm. Once a home is identified, you still have the ability to shop for what is best for them. 

VA Loan vs. Traditional Loan

VA Loan

Conventional Loan

VA loans are amongst one of the last remaining, 0% Down mortgage options for qualified buyers

Conventional loans generally require down payments that can reach up to 20%

Easier to qualify for because it is guaranteed by the government

Conventional options hold stricture qualification procedures that can put home ownership out of reach for some home buyers

Since VA Loans are government guaranteed, lenders do not require Private Mortgage Insurance

Mortgage Insurance is a requirement for borrowers who finance more than 80% of their home's value, tacking on additional monthly costs.

The VA guaranty gives lenders a greater degree of safety and flexibility, which typically means a more competitive interest rate than non-VA loans

Without government guaranty, lenders are taking on more risk which, in turn, can result in a less-competitive interest rate for borrowers.

 

There are many types of VA loans. You can learn more about each type on Mortgage Network's VA loan page

Additional Notes on VA Loans

  • You don’t have to be a first-time homebuyer
  • You can reuse the benefit
  • VA-backed loans are assumable, as long as the person assuming the loan qualifies
  • VA may be able to provide assistance if you run into difficulty making payments.  

Check out the Mortgage Network for more
information on VA loans and give us a call
if you’re ready to start your home search

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