September 17, 2021

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Mortgage News

Putting Homeownership for Military Borrowers

One of the most valuable aspects of the VA home loan is that skilled buyers can buy a home with no money.

Since World War II, the VA Home Loan has helped millions of military, veterans, and military families realize their dream of owning a home. Despite its perks, many veterans don’t take advantage of it, either because they don’t know it exists or because they believe some of the common misconceptions.

If you are eligible for the VA loan, it is definitely worth exploring as the program offers a handful of benefits not normally found with other mortgage products.

No deposit

One of the most valuable aspects of the VA home loan is that skilled buyers can buy a home with no money. Conventional and FHA loans typically require a minimum of 3% and 3.5% down payment, respectively. For a $ 200,000 mortgage, that’s $ 6,000 for a conventional loan and $ 7,000 for FHA – sizeable sums of money for any buyer. Skipping the down payment is a huge benefit for military borrowers as they can move into a home sooner without their savings.

No monthly mortgage insurance

Conventional loans and other government loan options usually require monthly mortgage insurance if the down payment is less than 20%. The mortgage insurance rate depends on several factors, but Freddie Mac says that traditional loan borrowers can expect to pay roughly between $ 30 and $ 70 per month for every $ 100,000 borrowed.