If you’re a veteran, we want to tell you about a loan that helps you take the empowering journey into home ownership—and doesn’t require a down payment.
The VA loan helps military members, veterans, and surviving spouses buy homes
Established in 1944 to provide home financing to World War II veterans, the VA Loan (originally called the ‘Servicemen’s Readjustment Act’) has helped more than 22 million veterans and surviving spouses become homeowners.
In contrast to most traditional home loans, VA loans require no down payment unless required by a lender, or a purchase price is more than a property’s reasonable value. This helps veterans obtain a loan who might have struggled to save money and build credit due to military deployments.
VA loans also don’t require private mortgage insurance (PMI). In most traditional home loans, lenders require borrowers to pay PMI unless the borrower puts 20% down on the home. But because the federal government backs VA loans (protecting the lender), eligible veterans are not required to pay for PMI. This monthly savings helps veterans build equity (wealth) in their homes at a faster rate.
Because the government backs each VA loan, lenders can offer veterans interest rates that are lower than non-VA loans. This can provide veterans with additional cost savings when combined with not having to pay for PMI.
Eligibility requirements
To be eligible for a VA loan you must receive a Certificate of Eligibility from the U.S. Department of Veterans Affairs (VA). As a veteran, you must also meet service and discharge requirements established by the VA.
VA loans can only be used to purchase your primary home. They can also be used to to make home improvements, including installing energy-efficient features.
If you’re interested in learning more about this outstanding loan for veterans, please contact me today!