Your VA Benefits

Home loans have been in the news a lot lately - with the controversy over variable rates and questionable subprime lending practices. I get rather nervous when I think about borrowing for a new-to-us home. But, after reviewing the basics of VA home loans, I noticed that they are much different and much less risky.

The greatest benefit, to both the lender and the buyer, is that loans made by the VA are guaranteed. That means the lender is protected if the veteran becomes unable to repay the loan and the veteran receives the more favorable financing terms that are usually only available when the buyer makes a down payment. As with other mortgage types, the VA uses banks, credit unions, and mortgage companies to find financing.

A VA home loan is much more attractive than a conventional loan for many reasons, including:

• The Interest Rate is negotiable!
  • Get approval with less than perfect credit and still obtain a quality rate
• No Mortgage Insurance Premiums!
  • 100% financing with no mortgage insurance, means the entire interest payment is tax deductible
• Closing costs are often lower than other financing types
  
• An assumable mortgage
  
• No penalty for prepay!
  
• Reduced funding fees with a down-payment of at least 5%
  
• Ability to finance the VA funding fee
  
  
• Refinance a VA loan through a "streamline refinance" which:
  • requires no income, asset, or credit verification,
  • is much cheaper than a conventional refinance, and
  • waives many of the traditional closing costs

While the VA does perform an appraisal of the home being purchased, to confirm that the value equals the amount being financed, they do not inspect the structure. As with any home purchase, it is important for the buyer to obtain a qualified residential inspection in order to ensure that there are no structural or construction problems.

This is just one of the many benefits available to veterans and explained at Your VA Benefits.com. The site is not affiliated with the Department of Veterans Affairs, but they offer information about the GI Bill, healthcare eligibility, benefits for homeless veterans, vocational rehab, life insurance, and compensation and pension information.

Stop by and see if they can answer some of your questions.

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God Bless!

Jules