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VA Loans: Understanding the Benefits and Facts

Categories: Articles | Posted: October 24, 2018

As someone who has served in the military ranks, you’re eligible to receive exclusive financial benefits when purchasing a home. You and your family can apply for a VA loan for access to better rates and lower costs than traditional, conventional mortgages.

What is a VA Loan

According to Investopedia, this type of loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs. Those eligible include active service members, veterans, and eligible surviving spouses that are not remarried. The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan. VA home loans are provided by private lenders such as banks and mortgage companies.

Facts about VA Loans

You may have heard some myths about VA loans. Maybe you’ve been told some restrictive factors, but those may not be accurate. Here are a few facts to know when considering this type of loan for your future home purchase.

  • Active duty and deployed service members, along with National Guard and Reservists may be eligible
  • Unmarried spouses of those killed in combat may be eligible to receive the same VA benefits of their deceased spouse
  • You can receive VA benefits for all primary home purchases, not just your first home purchase
  • Financing is available for up to $1.5M
  • Interest rates for VA loans are consistent with conventional loans and sometimes, even lower
  • VA loans are available for a number of housing types, not just single family homes

Also, if you work with one of our preferred lenders, Napolitano Homes will assist with the closing costs, so that’s even more savings for you and your family during the purchasing process. This benefit varies by community, so ask your site agent for details.

For more facts about VA loans, check out these helpful tips from one of our preferred lenders, Donna Thomas.

Benefits of VA Loans

Aside from our benefit of covering the closing costs, other benefits of VA loans include:

  • No down payment required, unless required by the lender, or if the purchase price is above the established property value
  • You won’t pay private mortgage insurance, which can save you thousands of dollars each year
  • The lender may not charge a prepayment penalty
  • If your financial services change, the VA may provide you with assistance to cover your mortgage payments
  • Many states offer additional benefits to veterans such as property tax reductions

If you’re ready to get started with the loan application process to purchase a new home, or if you have any questions about VA Loans, you can contact Donna at 757-361-5004. You can see all of our preferred lenders here, including Southern Trust and Towne Bank in addition to Wells Fargo.

And to check out our available homes, visit napolitanohomes.com today!

Erica

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