VA loans in Mesa, AZ, are touted as ‘the most powerful mortgage options on the market for Veterans, active members, and surviving spouses’ for good reason. If you’re still unsure whether to apply for VA loans in Mesa, AZ, the following reasons may help you decide. The following reasons may help you finally decide to go for it.
- A down payment is not required, making the initial costs cheaper and giving you more flexibility in choosing a new home.
- No prepayment penalty. Unlike other types of loans that impose penalties for early payment, VA loans have no prepayment penalty. It means you don’t need to worry about penalties if you pay your loan before the repayment period.
- Refinancing without re-qualifying can be a necessary but tedious process, especially with other types of loans. With VA loans in Mesa, AZ, such an issue is non-existent; you do not need to undergo the qualification process again.
- VA loans can cover up to 100% of the property value, with the exception that lenders who sell their VA loans in the secondary market must limit the size of those loans to the maximums prescribed by the Government National Mortgage Association (GNMA) or any conduit they use to sell the loans.
- No insurance premium. With VA loans, insurance premium is not a requirement as they are guaranteed by Veterans Affairs, reducing the risk for lenders.
- More leeway on credit requirements. The Department of Veterans Affairs does not set or enforce credit score minimums as they only oversee the loan program and do not issue loans.
- Limits on closing costs. Closing costs can be a hefty portion of an initial payment for a home. But chapter three, section one of the Lender Handbook specifies that closing costs “payable by the veteran are limited by regulation to a specific list of items plus a one percent flat charge by the lender.”
If you are looking for a reputable mortgage company that can help you in your applications for VA loans in Mesa, AZ, look no further than HomePlus Mortgage.