Why Choose A VA Loan in San Antonio, TX? Here Are Some Benefits

October 28, 2023

Why Choose A VA Loan in San Antonio, TX? Here Are Some Benefits

By Published On: October 28th, 2023Categories: Mortgage Loans, San Antonio TX, Texas, VA Loan, VA Loan Texas

If you apply for a mortgage loan, you will probably choose a VA loan in San Antonio, TX. And why not? If you meet the requirements, a VA loan can be a sound option in your quest for a new home.

Here are some advantages of getting a VA loan in San Antonio, TX:

A down payment is not a requirement. In most cases, lenders require a down payment that ranges from 3% to 20% in mortgage loan applications, and that’s quite an amount. With VA loans, however, you can apply with zero downpayment, which is why, for many servicemembers and veterans, this is the most attractive feature of VA loans.

Lower interest rates. As opposed to conventional loans, VA loans tend to have lower interest rates. The primary reason is that the federal government backs this mortgage loan type, and lenders have the luxury of charging competitively lower interest rates. Of course, rates still fluctuate based on market conditions as well as by location, changes in government policies, and credit score.

Monthly insurance is not required. In conventional mortgage loans, they impose insurance payments to protect lenders should borrowers default on their loans. With VA loans, however, it is not a requirement since the government guarantees VA loans. That means if a borrower defaults, the VA will pay the lender.

No prepayment penalty. If there will come a time when you significantly improve your financial health and decide to pay off your loan early, you can do it without worrying about paying a prepayment penalty.

Lower funding fees. If a borrower receives service-connected disability compensation, they may qualify for lower funding fees. Lenders impose funding fees to help offset the cost since there is no mortgage insurance.

There are plenty of benefits when choosing a VA loan in San Antonio, TX. So, if you are getting a mortgage loan, consider adding a VA loan into your list of options.

If you have more questions about VA loans in San Antonio, TX, don’t hesitate to contact us here at HomePlus Mortgage.

Call (512) 949-3385 for inquiries.