The VA loan is a home loan that was created by the United States government with the main goal of helping servicemen and women purchase homes. Since it was created in 1944, the VA loan program has helped over 20 million veterans and their families successfully purchase a new home with excellent financing benefits.
In today's market, the VA loan has become increasingly important to Veterans because of the way lenders nationwide have tightened up their lending guidelines. The VA loan was specifically created to help Veterans and Active Duty get a home, and the lending approval process can be much easier than traditional loans.
The VA loan differs from all the traditional loans in many different ways. A few of those are no down payment, no private mortgage insurance, competitive interest rates, and it's even easier to qualify.
VA loans are one of the last home loans available that offer 0% down payment. Conventional loans generally require 5% down minimum and sometimes up to 20% down to secure the loan. Can you imagine how much people without military experience have to pay out of pocket to get a home? A conventional loan on a $200,000 home would require the average home buyer at least $10,000 all the way up to $40,000 to get approved where the VA would require $0!
Private Mortgage Insurance or PMI is required by banks that finance the loans that put less than 20% down. This is an extra cost on your monthly payment that could not only add hundreds to your bill each month but also put many of the homes the buyer desires out of reach. With the VA loan, this private mortgage insurance is not required since the loan is 100% backed by the government.
Since the government doesn't back traditional loans, the banks backing these loans are taking a greater risk which can result in less competitive interest rates. The VA loan is guaranteed by the government which gives lenders flexibility and willingness to provide more competitive interest rates.
Traditional loans are not guaranteed by the government, so the lenders have very strict and stringent guidelines making qualifying for a home loan tough. The VA loan being guaranteed by the US government mean less risk for banks that lend. This means the loan qualification process is less strict for VA borrowers.
It's simple! The VA home loan is our bread and butter. We work with Veterans on a daily basis to help them get into their new home using their benefits they have earned. As we say in our video above, you fought for our freedom, so we want the opportunity to fight your you.