The Benefits of VA Loans
A VA loan is quite possibly the most powerful and flexible lending option on the market for active military and veterans today. The VA loan program’s advantages over other loan types are the main reason why VA loan volume has continually grown over the last few years. For those who’ve served our country, VA financing comes with significant financial advantages. Keep reading to find out how you can benefit on the journey towards homeownership with the help of VA financing.
$0 Down Required
Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception. With a VA loan, you can finance up to 100% of the purchase price, rather than paying 5 to 20% or even more of the home’s purchase price upfront in cash. The VA loan is a true no-money-down opportunity.
Competitive Interest Rates
VA loans generally carry extremely low-interest rates. These reduced rates are in part set by the Federal Reserve. Many traditional home loans have adjustable rates that originate at 3% and may go above 12%. A VA Home Loan with a fixed rate will never increase. Because the interest rate is set for a period of time that may be as long as thirty years, the borrower’s annual payments will remain unchanged for the duration of the time you hold the loan.
Lenient Credit Requirements
Like all mortgage types, VA loans require specific documentation, an acceptable credit history, and sufficient income to make your monthly payments. VA loan guidelines tend to be more flexible compared to other loan programs, made possible because of the VA loan guarantee.
No Prepayment Penalties
The majority of traditional loans call for a prepayment penalty. This means, that in the event of a home being sold or refinanced, the lender will potentially charge you fees as a result of an early full payment. Under some circumstance, this can amount to as much as thousands, or tens of thousands of dollars.
Pacor Mortgage is here and always eager to help. We provide a number of mortgage loan services to ensure the home buying and owning process is as simple as possible. Contact us at (773)881-7744 today, or visit our website, to learn more and get started with an appointment.
