Applying for VA loans, Tucson, AZ, might have crossed your mind lately. If you are wondering whether or not it is the right choice based on your financial situation, the following VA loan benefits can help you make an informed decision.
1. Down payment is not necessary – while most other home loan programs require you to put some amount for a downpayment, VA loans Tucson, AZ don’t. Of course, you can still opt to put some amount for the down payment, and it has some benefits, including a lower VA funding fee and more affordable monthly mortgage payments.
2. Has a government guarantee – it means the government will pay the lender a portion of the loan amount if you can no longer make monthly payments for whatever reason. As a result, private lenders offer VA loans with attractive terms.
3. No prepayment penalty – it means a VA loan will not prohibit your right to sell the property partway through your loan term. You need not worry about prepayment penalty or early-exit fee, regardless of the time frame you decide to sell your home.
4. No mortgage insurance – other conventional mortgage loans require you to pay for mortgage insurance if you make a down payment that is less than 20%. That makes a VA-backed mortgage even more attractive as it makes it more affordable upfront.
5. A variety of options available – yes, with VA loans, you can choose from the following option – fixed rate, adjustable rate. Furthermore, you can also use a VA loan to buy a house, condo, manufactured home, newly-built home, duplex, or other types of properties.
6. Assumable – it means you can transfer your VA loan to a future home buyer if that person also has VA eligibility. It offers an advantage for you when you sell your home, particularly in a rising mortgage rate environment.
Online looking for a reputable mortgage company that offers VA loans in Tucson, AZ, contact HomePlus Mortgage at ( 512) 949-3385.
