As we always say here on HomePlus, every borrower should make sure to check and understand every detail of the loan application before accepting any deal. That is because, whatever deal you take, it will affect your life in the long run.
For those who are planning to apply for VA home loans, Los Angeles, CA, the following facts can help you make an intelligent decision.
No down payment requirement – This is perhaps one of the biggest advantages to a VA loan. While other mortgage options, such as FHA, need at least 3.5% to put down, VA loans do not have such a requirement. However, just because paying a downpayment isn’t a requirement does not mean you do not have the option to do so. If you have set aside some amount, then you might want to consider paying the down payment. It will benefit you in the long run, particularly when it comes to paying your monthly dues.
No mortgage insurance – Another advantage you can expect from VA loans; VA homeowners can save thousands of dollars from having no mortgage insurance. Please note, however, that there is what we call VA funding fee, which is a one-time fee applied to every VA purchase as well as in a refinance loan.
Recurring benefits – Your VA home loan benefit isn’t a one-time privilege. You can use it as many times as you want. For instance, you purchased a home with a VA loan. After paying off the VA loan completely, you want to sell it as you have outgrown the home and you need something bigger. You can re-use your benefits to buy another home. Your entitlement is restored in full.
If you are an Eligible Veteran or Serviceperson, another way to reuse your benefit is a one-time restoration. It is given when you pay off the VA home loans, Los Angeles, CA, but you decide to keep the home.
Accessible from local lenders – Unlike most other VA benefits, the VA home loan is available from private companies – not the government itself. In other words, the Dept. of Veterans Affairs does not take and approve the loan applications or issue funds. Private banks, credit unions, and mortgage companies do it. The VA provides insurance to lenders, which is called the VA guaranty.
Do you want to learn more about the benefits of VA home loans, Los Angeles, CA? Talk to a mortgage expert from HomePlus today.
Call us at 800-810-PLUS (7587).