5 Reasons to Buy Your Home With a VA Loan

By Dan Main

For many prospective homeowners, getting loans can be challenging. If you’re an active service member, veteran, or surviving military spouse, you may qualify for a VA loan. Typically provided by banks and private lenders, this mortgage option is backed by the Department of Veterans Affairs (VA). With that extra support, military families gain several financial benefits, including those listed below.

5 Benefits of Using a VA Loan

1. No Down Payment

In general, first-time homebuyers are told to place down payments of about 10 to 20% of the total purchase price.

VA loans waive this requirement so you can become a homeowner without having to submit any down payment.

2. Reduced Closing Costs

VA Loan After your offer to buy a home is accepted, you usually have to pay a variety of fees to finalize the purchase.

If you’re financing through a VA loan, however, you can take advantage of closing cost restrictions that will lower your overall responsibility. In many cases, if you can’t pay for these fees out-of-pocket, you can use credit from the home loan to cover the closing costs.

3. Low Interest Rates

Although interest rates are dictated by many factors, those with military loans can expect to pay lower rates than those typically required for conventional mortgages. You’ll also have the flexibility to choose a fixed- or adjustable-rate mortgage to better fit your long-term financial plans.

4. No Pre-Payment Penalty

Paying off a mortgage early will help you save on interest. However, many mortgage plans come with pre-payment penalties that will charge you extra if you cover the debt ahead of schedule.

Fortunately, military loans are excluded from these fees. You can also avoid early-exit fees if you decide to sell the home before you pay off the mortgage.

5. Not Just for Buying Homes

VA loans do more than finance home purchases. If you qualify for the mortgage, you can use the funds to build a new home, repair an existing one, or refinance. So, if you already owned property before you or someone in the family joined the military, you’ll still be able to benefit from this program.

If you’re curious about VA loans, Dan Main is a qualified loan officer that will introduce you to all of your options. After reviewing your finances and benefits, this mortgage banker of O’Fallon, MO, will customize a plan that fits both your current and future needs. If you don’t qualify for a military loan, he will connect you with other first-time homebuyer programs to lower your costs, such as Federal Housing Administration (FHA) loans and down payment assistance. Visit his website for more details on loans for military families or call (636) 284-4144 to schedule a consultation.

Dan Main: NMLS # 502036