VA home loans are loans that are guaranteed by the US Department of Veteran Affairs. These loans are available to active members of the military and retired veterans alike. Even members of the Army Reserve and National Guard are eligible. According to the US Department of Veteran Affairs, spouses of deceased veterans may be eligible for a VA loan in certain circumstances. There are many reasons why you should take out a VA home loan when you decide to purchase your next home. Here are just a few of the ways a VA loan from a company such as Unity West Lending can benefit you:
1. You won't have to pay a down payment.
In most cases, you won't have to pay a down payment on your future home. This is because the loan is guaranteed by a branch of the government, so lenders don't feel the need to take collateral from you. This can help you purchase a home much sooner, since you won't have to save enough money for the initial payment.
2. You can use a VA loan on more than one house.
A VA home loan isn't a single-use benefit. You can continue to take out VA home loans as long as your existing loans remain in good standing. This is great news for anyone who wants to invest in real estate or anyone who wants to purchase a second home. Even if you already purchased a home without using a VA home loan, you can take out a VA loan for your next house purchase.
3. You will likely save money when closing.
Closing costs are fees that you pay when closing the deal on your house purchase. These costs can include things such as tax, title insurance, and homeowners insurance. When you purchase a house using a VA home loan, there are additional rules imposed on the property's seller; the VA sets a limit on the amount they can charge you in closing costs. In some cases, the seller might even pay the closing costs for you.
4. You will pay less interest.
VA home loans typically have more favorable interest rates than loans that are not backed by the VA. Not only will you save money on closing costs and down payments, but your mortgage will be lower as well. With a lower mortgage, you'll be able to pay off your home sooner. A VA loam means you'll have fewer bills to worry about and more time to enjoy your new home.