The United States Department of Veterans Affairs (VA) helps military members, Veterans, and eligible surviving spouses become homeowners. The VA provides a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. If you’re a service member or a veteran, you should consider a VA home loan. If you know a service member or a Veteran, share this with them. There are very few, if any, loan programs that can beat the this program. There are many reasons for service members and veterans to use a VA loan below are some benefits.
Benefits of a VA loan vs other loans
- VA loans are not required to have a down payment in most cases. Conventional loans generally require a 5 percent down payment, and FHA loans require 3.5 percent.
- No monthly mortgage insurance premiums (PMI) to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.
- Limitation on buyer’s closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.
- Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types.
- No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.
- Second tier entitlement. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement. So they can buy more than one home with their VA benefits.
- An assumable mortgage, typically subject to VA and/or lender approval. You may be able to have someone take over your mortgage payment, which can be a big benefit in an environment of rising interest rates.
- Foreclosure avoidance advocacy from the VA loan program. The VA has staff members who advocate on behalf of homeowners to find alternatives to foreclosure.
VA Funding Fee
Lenders are required to collect a VA funding fee by the federal government. This reduces the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The fee is usually 0.5 percent to 3.3 percent of the total amount of the loan. You can finance the funding fee or pay it in cash at closing.
- Disabled veterans don’t have to pay this fee. Also, disabled veterans can ask for a refund if the date of their disability compensation comes before the closure of the loan.
Disabled vets are eligible for tax exemptions and credits when they buy a new property. You can reduce the amount of annual taxes you need to pay through the Disabled Veterans Tax Exemption program. The exemption amount is different for different states; a local VA office will tell you more about the specific benefit in your state. Most disabled veterans receive full exemption.
Texas Veterans Land Board
The VLB Veterans Land Loan Program is the only one of its kind in the nation, giving Texas Veterans the opportunity to borrow up to $150,000 to purchase land at competitive interest rates while typically requiring a minimum 5% down payment for tracts one acre or more.
The program is easy to use and offers Texas Veterans exclusive financing towards purchase of their own piece of Texas. The bonds used to fund the program are retired from loan repayments and the cost of administering the program is financed through a small fee charged on each loan.
Let me serve you!
Thank you for serving our country! I am honored to be able to serve military members and Veterans become homeowners. Please call or email me so I can help you receive the American Dream of homeownership you deserve.