If you are attempting to buy a new home for yourself and your family, you probably need a loan.
If you are a veteran of the United States Armed Forces, you are eligible for a VA home loan.
You should be aware that there are definite advantages that come with applying for this type of loan over a conventional home loan.
WHAT ARE VA LOANS VS CONVENTIONAL LOANS?
A VA loan is secured with the backing of the United States federal government.
The agency backing your loan would be the U.S. Veterans Administration (VA).
Other types of loans, such as those offered by a bank or other commercial institution, are known as conventional loans.
They are loans that are not secured by the VA or any other agency of the federal government.
WHAT ADVANTAGES DOES A VA LOAN OFFER?
There are many advantages that a VA loan offers over a conventional loan.
To begin with, in most cases, you will not be required to make a down payment.
This is not the case if you attempt to apply for a conventional home loan.
To secure that kind of loan, you would normally be required to make a down payment of 5%.
If you apply for an FHA loan, the figure is usually 3.5%.
THERE IS NO MONTHLY INSURANCE PREMIUM TO PAY
In most cases, a person who receives a loan from the VA will not be required to make a monthly insurance premium payment. This is because the loan has already been insured by the VA itself.
By contrast, those who receive an FHA loan will be required to pay an upfront charge for mortgage insurance, as well as an additional annual charge.
If you qualify for a conventional loan, you can expect to pay any number of mortgage insurance premiums and fees unless you are making an initial down payment of over 20%.
The premiums you pay may rise even higher, or fluctuate uncomfortably, if you are taking out an adjustable rate mortgage.
YOU CAN EXPECT TO PAY LOWER AVERAGE INTEREST RATES
Home buyers who qualify for a VA sponsored loan can expect to pay much lower interest rates on average than those who receive other types of loans.
At the time of writing, the average interest rate associated with a VA loan continues to be much lower than FHA or conventional mortgage rates.
YOU DON'T HAVE TO WORRY ABOUT PREPAYMENT PENALTIES
One of the best features associated with taking out a VA home loan is that you can decide when to pay off the loan.
You can pay the loan off as early as you like without incurring any kind of prepayment penalties. This is normally not the case with conventional loans.
The advantages listed above are only a few of the many features that come with qualifying for a VA home loan.
Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.
Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com
VA Loans for Vets 7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258 Phone: (480) 351-5904 Email: jimmyv@fcbmtg.com