Borrowers can apply for different types of mortgage loans. But for veterans, many consider VA Loans, El Paso, TX, as the best way to homeownership. They provide significant advantages, including the following:
They require no down payment – Unlike any other type of loans wherein one needs to pay 5, 10, 20 percent or more for a down payment, VA loans, El Paso, TX, is an exception. With VA loans, one can finance up to 100 percent of the purchase price.
Mortgage insurance isn’t a requirement – Usually, lenders require borrowers to pay for mortgage insurance when one makes a down payment that is less than 20 percent. However, with VA loans, insurance is not a requirement because the VA guarantees this type of loan.
There’s nothing to worry about prepayment penalty – A VA loan will not prohibit the owner of his right to sell the property anytime within the loan term. In other words, there is no prepayment penalty or early-exit fee regardless of the time one plans to sell the property.
It is a lot easier to qualify – As opposed to other conventional mortgage loans, VA loan guidelines tend to be more flexible. Why? Because of the VA loan guarantee. The Department of Veterans Affairs designed it to make it easier for military members, veterans, and qualifying military spouses to buy or refinance a home.
The funding fee is flexible – VA loans require an upfront cost called “funding fee” based on the loan amount, the service eligibility, and down payment size, among other factors. However, this funding fee does not need to be paid in cash. Instead, the VA allows you to finance this fee with your loan. That means nothing is due at closing.
Are you interested in VA loans, EL Paso, TX, but want to learn more? Talk to an expert mortgage broker at HomePlus today.
Call us at (512) 949-3385.