VA Loans: Helpful information about this type of home loan

VA Loans can make homeownership possible for those who have served our country. Here's some helpful information about this type of home loan.

But first, let's tackle what a VA home loan is. It's a government-backed mortgage option available to Veterans, service members, and surviving spouses. VA loans are made by private lenders, like mortgage companies and banks, and not the Department of Veteran Affairs. 

It can be used to offer competitive interest rates and terms and to purchase a single-family home, condominium, multi-unit property, manufactured house, or new construction. 

Who is Eligible for VA Home Loans?

• Active-Duty Personnel
• Veterans
• Members of the Reserves and National Guard
• Eligible Spouses
• Previous and First-Time Homebuyers

What can VA Home Loans be used for? 

• Buying a Home or VA-Approved Condo
• Building a Home
• Making Home Improvements

What are the benefits of VA Home Loans?

We've listed some of the many benefits of a VA loan:

• Options for No Down Payment. The single-largest benefit of the VA loan is that qualified Veterans can purchase without a down payment. This huge advantage allows Veterans and service members to buy homes without having to spend years saving for that typical lump-sum payment.
• Better Terms and Interest Rates. Having the lowest average fixed rates on the market. VA loans have had the lowest average 30-year fixed rate on the market for the last six years, according to data from ICE Mortgage Technology. VA interest rates are typically 0.5 to 1 percent lower than conventional interest rates.
• Limited Closing Costs. All mortgages come with fees and closing costs, but the VA actually limits what Veterans can be charged when it comes to these expenses. In fact, some costs and fees must be covered by other parties in the transaction. These safeguards help make homeownership affordable for qualified homebuyers.

VA loans are arguably the most powerful loan option on the market. They come with a list of big-time benefits, including $0 down payment, no mortgage insurance, flexible and forgiving credit guidelines and the industry's lowest average fixed interest rates.

Every Veteran buyer's situation is different, and going over all of your loan options with a home loan specialist can help ensure you make the best financial decision possible.

Homeownership is the American Dream. One way we can honor and thank our veterans is to ensure they have the best information about the benefits of VA home loans.