VA loans carry a wealth of advantages over other types of home loans, making them an ideal choice for anyone who qualifies. Take a look at a few of the benefits of VA loans:
No down payment
Coming up with a large down payment can be a challenge for many families. While zero-down loans used to be relatively common, stricter lending requirements in recent years have eliminated nearly all no-money-down loans. With VA home loans, however, you are not required to have a down payment, making it easier to purchase a home.
When you put 20 percent down, most lenders require private mortgage insurance (PMI). This can add hundreds of dollars to your monthly payment. PMI is waived for VA home loans, so you can put zero down without having to pay extra for PMI.
Lenient credit requirements
You don’t need perfect or even excellent credit to qualify for a VA loan. Most lenders require a credit score of 640 to be eligible for VA home loans.
A VA loan does not limit buyers to a certain type of home. Single-family homes, modular or manufactured homes, townhomes and condos are all eligible for VA funding.
Competitive interest rates.
When it comes to any home loan, the lower the interest rate, the better. The interest rates for VA home loans are competitive to other types of loans. In fact, they are often up to one percent lower than conventional mortgage loans. Depending on the size of your loan, even one percent can help you save a great deal over the life of your loan.
VA home loans come with a number of advantages no other loan has. If you’re a veteran or active duty service member, a VA loan can help you purchase the home of your dreams. For more information about VA loans, contact one of the personal mortgage advisors at NLC Loans toll-free today at 1-877-480-8050.