This post contains affiliate links. Click here to read my affiliate policy.
Last Updated on August 25, 2021
Many veterans have started to get onto the property ladder due to specialized veteran specific loan programs. They allow veterans to afford houses with lower fees and costs, along with fairer regulations for them to qualify. This is what you need to know about VA backed loans if you are a veteran, or you know someone who is.
You Will Not Need To Pay A Down Payment
One of the biggest reasons that veterans use VA backed loans in comparison to conventional loans from traditional lenders is that they do not require any sort of down payment. These loans are provided by private lenders, but they are backed by the Department of Veteran Affairs, meaning that the lenders won’t lost out as a portion is paid by the government.
You Will Have This Benefit For Life
The good news is that this benefit is not a one off. That’s because once you’ve obtained your certificate of eligibility, you will be able to use various different VA loan programs for the rest of your life. This is a great benefit as it allows you to use different loan programs such as home purchases or refinances for different properties.å
It could be a good idea to choose the same VA provider to service your needs, as they will get to know you and your needs over the years. Using VA specialists over traditional lenders is useful as they have more expertise than others. Hero Loan, for example, can tell you all about the VA loan eligibility requirements, as well as the amount you could be saving on interest fees and mortgage costs in general.
Surviving Spouses Could Be Eligible
If you are a veteran worried about what could happen to your spouse if the worst was to happen, then rest assured knowing they can also utilize the VA loan program. They will be able to qualify if the veteran in question died during active service, or later on as a result of a disability obtained from the service.
Some Fees Are Waived
Purchasing a home usually means you will need to pay off certain closing costs and fees that are normally paid for the buyer or seller. Whilst some of these fees will be waived, it’s important to know that there still could be a VA funding fee that needs to be paid. This will usually be a one-time payment that a veteran will make to help lower the cost of the loan for the U.S. taxpayer.
Lower Credit Scores Accepted
The Department of Veteran Affairs introduced these loans to help improve the chances of veterans affording homes post service. That’s why lenders and realtors in general will look to accept veterans who apply even if they have a lower credit score. It will be unlikely to make much of a difference to the interest rates offered, but it is best to speak to your VA loan specialist via a consultation to know for sure.