The Department of Veteran Affairs is dedicated to serving the nation's veterans in a variety of ways, and one of their foremost missions is helping veterans become homeowners. For many people looking to buy a home, the loan that they are required to take out in order to afford the home is by far the biggest obstacle. Fortunately, VA home loans make homeownership that much easier and come with a stunning number of benefits. Take a look below for just three of the biggest advantages that VA home loans offer.
No Down Payment
One of the key features of the VA home loan program is that there is no down payment required of buyers. Instead, the VA itself acts as a guarantor for a percentage of the repayment. Homebuyers are asked to pay a VA funding fee, but this can also be financed so that payments are spread out over the course of several months or years. Not having to save up the traditional twenty percent of a home's cost as a down payment means that a huge barrier to homeownership is taken care of straight away.
Refinancing Made Easy
There are many types of VA home loans, and one of the most popular with veterans is the Interest Rate Reduction Refinance Loan (IRRRL). The IRRRL is also called a 'streamline' loan because it helps to make the process of refinancing so much easier. Though you do have to go through a private lender and pay closing costs, you are likely to be eligible as long as you have a current VA loan that covers the home you currently live in, and you are using the IRRRL to refinance that same loan. In this way, VA home loans help to lower or stabilize your monthly payment even after the initial loan.
If you have already sold a home that you paid for using a VA home loan, there is good news: you can take advantage of all the same benefits again and again. As long as your previous property — and therefore the VA home loan — has been paid off, you can take out a second loan without a down payment. In fact, in select cases you can use a VA home loan to purchase a second home, provided it is an additional primary residence and not a vacation home or an investment property.
For more information on VA loans, contact a company like Dominion Capital Mortgage.