Will you be PCSing to a new military community and looking to buy a home? Or, are you currently serving or have served in the U.S. military and curious about the VA Home Loan Benefit? Let’s dig in and learn more about this incredible benefit that you have earned.

Why would a VA Home Loan be the best choice for you?

VA loans offer many advantages for current or former service members. Whether you are looking to buy a home or refinance, you can do so without many of the expenses or restrictions that apply to people seeking conventional loans. This program is in place specifically for your benefit, so why not take advantage of it?

Let’s take a look at some of the highlights of your well-earned VA Home Loan benefit:

• 100% financing–no down payment necessary–VA Home Loans are government insured therefore it eliminates the need for Private Mortgage Insurance (PMI), a common expense for other loans when less than 20% is put down. However, putting some money down may help lower your VA Funding Fee, more below.
• Low Interest Rates–VA loans typically have lower interest rates than conventional loans.
• Flexible Underwriting Guidelines–Lower credit often accepted, VA-backed loans are far less stringent than conventional loans when it comes to evaluating your qualifications as a borrower, such as credit. That even applies to past events such as bankruptcies and foreclosures.
• Re-Usability–The VA loan program is reusable, and you can have more than one VA loan at a time, under certain conditions. Further, as long as you pay off the loan each time, you can use the benefits of a VA loan over and over. Even if you have had a problem such as a foreclosure or currently have a VA loan, you may be able to get another one. Someone else can even take on the loan if they are deemed eligible by the VA.
• No Pre-Payment Penalty–Many loan types have a penalty for paying off a mortgage before it matures. VA loans have no such penalty, which means you can pay it off early. That gives you more flexibility if you are looking to refinance or pursue other options down the road.
• Loan Limits–Eligible veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. If you do have remaining entitlement, you do have a home loan limit based on the county loan limit where you live.  
• VA Funding Fee–It is important to note that there is a VA Funding Fee. The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. There are a couple situations where one may be exempt from paying the VA Funding Fee. 

For all loans, the VA funding fee is based on these factors:

• The type of loan you get, and
• The total amount of your loan. The funding fee is calculated as a percentage of your total loan amount.

Depending on your loan type, lenders may also base your fee on these factors:

• Whether it’s your first time, or a subsequent time, using a VA-backed or VA direct home loan, and
• Your down payment amount

View VA Funding Fee Rates here>> https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs

This flexibility makes it a powerful tool for buying, building, or refinancing a home. These benefits truly showcase the program’s aim to thank service members for their sacrifices and to make homeownership accessible and affordable to those who have served our nation.

Looking to BUY a home at your next duty station?

Get connected with The Bridge Real Estate Network Lender Partner

Happy House Hunting 🙂