Did you know there is a Streamline Refinancing Program, which allows veterans to refinance at little or no expense to them? Also, you may be able to refinance a conventional or FHA loan over into a VA loan. Do you know all the hidden VA benefits that might be perfect for you? Be sure to check those out before you make your definite decision!
Individuals who qualify should certainly take advantage of the many benefits that a VA loan has to offer over a conventional loan. With a conventional loan, the loan is made AND secured by the lender. A VA loan differs from this because it is made by the lender, but it is secured by the federal government, therefore bestowing many more benefits. However, VA loans are only available to veterans and qualifying members of the armed forces.
Hidden VA benefits you need to be aware off
With VA loan you don’t need a down payment when you are buying your new home. Also, you don’t need any private mortgage insurance when you are getting your VA guaranteed loan. These VA home loans will give you more flexibility than it seems.
You can also use various different applications, not just for buying your new home. For example, with it, you can also purchase and improve your home, all with one loan! Or, you can just improve your current home and increase its energy efficiency. So, before deciding which loan would be perfect for you, make sure you checked all the options VA loan can offer you because it might be just the type of hidden gem you were looking for.
VA Refinance Loans
The VA even offers help for those looking to refinance. Don’t investigate these benefits without asking for information about the interest rate reduction loan, part of something called the Streamline Refinancing Program, which allows veterans to refinance at little or no expense to them. Also, you may be able to refinance a conventional or FHA loan over into a VA loan.
Refinancing might even bump up your credit score and make your monthly payment lower than it is now. The refinance will pay off your current debt and it might even leave you with enough money to buy or redecorate your new home.
Benefits you weren’t aware off
The specific benefits of a VA loan in comparison to a vs. Conventional Loans are numerous. VA loans offer exceptional loan rates, often much lower than those of a conventional loan. There is also no monthly mortgage insurance necessary for a VA loan, and the qualifying terms are much less stringent.
VA loans are only open to qualified veterans, and VA loans offer considerably more benefits than FHA loans. For instance, VA loans require no down payment; they offer fixed, competitive interest rates, no matter the buyer’s credit history; and they have limitations on closing costs.
VA loans have long amortization periods and afford the right to prepay the mortgage without penalty. One of the biggest benefits of a VA loan is forbearance. This means that the federal government extends leniency to veterans experiencing temporary financial hardship.
* (Please check with your VA Mortgage Loan consultant on most current guidelines, loan specifics, and benefits as in today’s lending environment, these can change frequently).