July 4th brings Thoughts on the Importance of VA Loans

On the eve of our Country’s Birthday, it is only fitting to salute the men and women who have served our country, allowing us the privilege to enjoy our freedom, liberties and prosperity. One small benefit to serving our country is the VA eligibility status for buying a home. Folks, it is the best loan going today. If you have VA eligibility use it….you earned it! Based on our country’s decision to utilize military force around the world, many people have VA eligibility but are not aware of the value it affords. Some veterans believe the rate is higher than other mortgage programs and others discard the VA option because of the funding fee that is typically required. The “pros” far outweigh any “perceived cons” when considering the merits of a VA loan. Yes the rate is higher but typically not much. An increase in rate is offset by the fact that a VA loan does not require monthly mortgage insurance. The funding fee can be financed into the loan so it is a minimal increase in monthly payment to finance in the funding fee over 30 years. The big benefit of a VA loan today is it requires no down payment. It is one of a handful of loans available today with 100% financing. If seller pays closing cost and pre-paids on a VA loan, the buyer may not bring any money to closing. Any money that was saved and earmarked for a down payment could be used to pay off consumer debt. So enjoy the rare opportunity VA financing allows with no down payment, no monthly mortgage insurance and an interest rate below 6%. If you have VA eligibility, grab your DD-214 or L.E.S. and get with your mortgage loan office. Examine and compare a VA loan with any other loan options available and see the benefits of using your VA benefit.