Since World War II, the VA home loan program has been a key benefit that helps millions of veterans, service members, and military families change their lives and own their own homes. Today, VA loans are more critical than ever as it becomes increasingly tough for many military borrowers to build the credit and assets necessary to move forward with conventional home financing.
The VA loan volume has continually grown since 2008, and it’s no wonder why: VA financing comes with significant financial benefits for those who’ve served our country, and the requirements to secure them are not as strict compared to a conventional or even FHA loan. Because these benefits are sometimes poorly understood, we’ll review them with you now.
ZeusLending loves serving those who served. Here’s why we steer a majority of our military borrowers toward VA loans:
This is big! The minimum down payment amount on an FHA loan is 3.5 percent; for conventional financing, it’s often 5 percent. Being able to purchase a home with $0 down helps veterans and active military members get a slice of the American Dream without having to cough up a sizable down payment.
Another common expense crossed out! FHA loans come with both upfront and annual mortgage insurance charges. With no insurance required, American veterans who secure a VA loan will save more than $40 billion in private mortgage insurance costs over the life of their loans, according to VA estimates.
Most VA lenders look for a credit score of at least 620. The 620 benchmark is in FICO’s “Fair” credit score range, which is a tier below “Good” and two below “Excellent.” Contrary to popular belief, though, VA buyers don’t need anything near perfect credit to secure financing. Contact ZeusLending to explore your options!
Once again, VA loans save you money over time. Since the VA guarantees a portion of every VA loan, financial institutions like ZeusLending can offer lower interest rates to VA borrowers as much as 0.5 to 1 percent lower than conventional interest rates.
Homebuyers can ask sellers to pay all of their loan-related closing costs and up to 4 percent of the purchase price for things like prepaid taxes and insurance, collections, and judgments. The VA actually limits what fees and costs veterans can pay at the time of closing.
The VA guaranty program isn’t just about getting veterans into homes. It’s also focused on helping vets keep them. The VA loan is the safest loan on the market for borrowers because of the VA’s residual income guidelines as well as its advocacy for veterans in jeopardy of foreclosure. Those efforts have helped more than 500,000 veterans avoid foreclosure since the 2008.
It’s a common misperception that a VA loan is a one-and-done benefit. Not true! Veterans who’ve earned it can use this program over and over again throughout their life—you can even take out multiple VA loans at one time!
If you’ve earned guaranteed VA benefits and you’re interested in exploring your home loan options, contact ZeusLending today. We work with veterans every day and have a deep understanding of the VA loan process. We’ll help you find the best loan for your needs and get you living in a home you can be proud of!