The VA Loan….4 reasons why it is the best.

VA

If you are a Veteran of one of the great military institutions and have served enough time to earn your Certificate of Eligibility, a VA home loan is most likely right for you! Here is an interesting fact, although some ill-advised experts will contend that 100% financing or low down payment programs led to the housing crisis, did you know that the 100% VA loan has the lowest rate of loan default out of any loan product on the market? The VA loan is the best financing product on the market, here are 4 reasons why:

100% Financing.
The VA loan entitles eligible Veterans to receive no down payment 100% financing on their home loans. This allows the Veteran to retain their personal savings making them better equipped to deal with life’s little emergencies that most likely will occur down the road. After all, life happens right?

NO Monthly Mortgage Insurance.
With most loan products, if you won’t put down 20% you must pay monthly mortgage insurance on your loan which is included in your monthly mortgage payment. Most all government backed loans such as FHA or USDA have required monthly mortgage insurance, but not VA loans. This increases the affordability of a home that the Veteran chooses, making it easier for them to maintain on time payments to the lender.

Flexible, Make Sense Underwriting Standards.
The VA has established make sense underwriting guidelines giving Veterans additional leeway when it comes to credit issues. They have the shortest seasoning guidelines on foreclosures, short sales, and Bankruptcy’s of any government backed loan. With that being said, the Veteran still must meet minimum credit standards established by the VA and the mortgage lender. Just because a Veteran has his/her Certificate of Eligibility is not an automatic loan approval. However working with a Loan Officer who has an extensive knowledge of the VA guidelines can be the difference between a loan approval and a loan denial. Although the VA has their own underwriting guidelines, not all VA Lenders have the same guidelines and you will find that credit score requirement vary greatly from lender to lender.

Low Rates
The VA does not establish mortgage rates or actually lend any money themselves to make a mortgage loan, rather mortgage rates are established by each individual lender. However, VA loan rates are some of the most competitive rates in the business.

If you are a Veteran and would like to explore your options to purchase a home using your VA Entitlement, we would love the opportunity to earn your business. Please call 770-924-1111 for a FREE, no obligation credit consultation.

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