Just about a year ago, many home sellers would not even meet with buyers using VA backed loans. Those times have changed. More veterans and active military personnel are using the VA loans available to them in an environment of more restricted conventional mortgage lending guidelines. The VA is making 30% more home loans than last year.
VA loans come in a very attractive package. For instance, their interest rates are very competitive and they do not require a down payment if the loan is $729,000 and under. If the loan is for more than that, the VA will require a small down payment. The no down payment option makes it much easier for qualified borrowers to buy or refinance a home, which is not easy for home buyers in this market.
Additionally, VA loans do away with private mortgage insurance (PMI) as well as prepayment penalties. Because the VA sets credit requirements easier to meet than conventional mortgage lenders, qualifying for VA loans is much easier. The VA will also help out borrowers if they ever run into financial problems and have issues making their payments. Borrowers can also roll the VA’s funding fee into their loan, making the VA loan itself even more attractive. Disabled veterans are given an even better deal. Those disabled veterans looking to borrow from the VA for a mortgage or a refinance do not have to pay the VA’s funding fee at all.
The VA itself does not make the loans. Instead, they insure and secure loans made by more traditional lending institutions such as banks. The amount of people able to take VA loans is limited however to eligible veterans, service members, and surviving spouses. It is easy to see my more veterans and soldiers are taking advantage of VA loans while they can.
If you are a disabled veteran who has been denied disability compensation or have not yet applied for benefits from the VA, contact LaVan & Neidenberg. You may be entitled to certain programs and benefits so contact our veterans disability rights firm today.