When it comes to buying a home, you have a few different options in terms of financing. More if you’re a veteran. There are Veterans Affairs (VA) loans as well as conventional loans that you can look into. Before you opt for one over the other, it’s important to know a little bit about each of them.
With a conventional loan, you will need to put 20 percent of the total purchase price of the home down as a down payment. If you are looking at a $100,000 home, that’s $20,000. Very few people have that kind of money. The other option would be to go with an FHA loan where you would put 3.5 percent down and then pay PMI until the equity reaches 20%.
If you are a veteran, you have the ability to file for a VA home loan. This means that you do not need to put any money down and you do not have to worry about PMI because the VA loan is acting as your loan backer to say that you will not default on the loan. By completing a VA home loan, you save a significant amount of money out of pocket – and with no PMI, you will save money each month as well.
There are a few things to know about a VA home loan. If you want to co-apply on a mortgage for qualification purposes, you will need to be married. Additionally, the home inspections for a VA loan are more stringent because the government wants to ensure you are buying a quality home – especially if they are the ones backing it.
Ultimately, when you look at a VA loan versus a conventional loan, there are many more benefits to a VA loan.
If you have served your country, you are entitled to the VA loan. Even if you’ve used it in the past, you may still be eligible, which means it never hurts to make the inquiry.Tags: va home loan, VA loan, va mortgage loan