Have you served in the military or are still on active duty? If the answer is yes you may be entitled to one of the best benefits the VA offers, home ownership! In today’s market you can save money by buying a house, rather than renting, and building your own equity. Why pay rent when you can take advantage of your VA benefit and invest in yourself?
Now is the time to find out what’s involved in purchasing a home. With that information you can take advantage of affordable home prices combined with the lowest VA interest rates in years! You can get started by talking to a realtor who knows your market area and has all the tools to guide you in your search for the “perfect” home. The Veterans Administration also has a web site that can answer questions as well. Just go to the VA Website and “click” on the Veterans Services tab (near the top), slide down to “Home Loans”, “click” on it and find the area you want to research. Between a realtor’s expertise and the Veterans Administration you will become an informed consumer!
When you use your VA entitlement for a purchase you can qualify for 100% financing with no “private mortgage insurance” required! Unlike a VA mortgage, conventional mortgages require “private mortgage insurance”, unless you have twenty percent down. An FHA mortgage mandates “private mortgage insurance” for a minimum of five years, no matter the size of your down payment*. PMI insurance adds an additional cost to your mortgage payment and impacts the size of the loan you qualify for! It only makes sense to use your VA entitlement for the only program offering 100% financing nationally, the VA!
A VA Mortgage has several other advantages:
•VA loans have no “pre-payment penalties.”
•VA loans are assumable, subject to the VA’s approval and the buyer’s credit.
•No monthly private mortgage insurance to pay.
•Seller can pay up to 4% of the purchase price toward the closing costs.
•A VA assigned appraiser is utilized to ensure an accurate appraisal.
•The Department of Veterans Affairs staffs several regional centers to answer questions and offer financial counseling.
A VA mortgage does have an upfront “funding fee” to help pay for the program costs and eliminate t he monthly “pmi” that thee other programs have. Those fees are based on the branch of service and size of any down payment used. They range, for a first time eligibility user buying a home, between 1.25% and 2.49%. The VA’s funding fee is added to the loan’s balance and is not an out of pocket expense. If the borrower has a disability rating with the Veterans Administration the VA funding fee may be waived.
Take advantage of your entitlement and check on your eligibility with the Veterans Administration today. Why pay rent when you can own your own home and get all the benefits of homeownership. Start building your own equity and ask your tax preparer how a VA mortgage, and homeownership, can benefit you next tax season!
