Lower closing costs
The VA also limits the amount lenders can charge in closing costs to VA loan applicants. This can make a VA loan more affordable than other types of loans. Saving thousands in closing costs means you can use that money you would have spent on closing costs to move in, make improvements, or buy furniture for your new home. Additionally, the VA allows the seller to pay up to 4% in concessions and all closing costs.
Easier to qualify
Since VA loans are backed by the U.S. government, the requirements tend to be more flexible, making it easier for veterans to qualify. It's a budget-based loan, so there is no debt- to-income ratio requirement.
Lower insurance
You’ll save on insurance as well, as VA loans don’t require private mortgage insurance (PMI), which most lenders require when you make a down payment of less than 20% of the purchase price. This insurance protects the lender if you default on your loan. Not having to pay PMI can save you hundreds of dollars each month.
No prepayment penalty
With a VA loan, you won’t have any prepayment penalties or early exit fees, no matter when you decide to sell your home. That means you can sell your home at any time during your loan term without worrying about penalties or fees.
Assumable and refinanceable
Most VA loans are “assumable,” which means they can be
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