VA Loans EXPLAINED: 10 Benefits of VA Loans That Every Veteran Needs to Know

Are you a veteran or active duty service member? Discover the 10 most important things people should know about VA loans, including things like, can I reuse my benefits more than once? Can I have more than one VA loan at a time? Do I have to pay mortgage insurance? And much, much more. So Morgan Financial is here to help you navigate these powerful benefits. So just remember, for all of these, you must be an eligible and qualified veteran. So stay tuned to the end as one of the last ones may certainly surprise you. And if you have any questions whatsoever about anything, please be sure to contact Morgan Financial for any of these things. So number one, down payment is not needed. So one of the biggest perks for most VA loan purchases, they require zero down payment. Now this is obviously specific to your situation. You have to qualify and be eligible, but the VA loan does not require a down payment. So if you're a first time home buyer or someone who likes to keep their money in their pocket, instead of making a big down payment, the VA loan might be a great solution. So number two, there is no private mortgage insurance. So unlike an FHA loan or conventional conforming loans that have less than 20% down, the VA loans don't require that you pay private mortgage insurance. And most private mortgage insurance is paid in monthly installments. So this could potentially save you hundreds of dollars in your monthly payment. With that being said, VA loans do have what's called a funding fee, which brings us to number three, the VA funding fee explained. So the one-time fee is kept to keep the VA loan program running. But certain veterans such as those with service-related disabilities may be exempt from this funding fee. It is typically financed into the loan and does not have to be paid in cash at closing. So number four, flexible credit guidelines. While credit is still checked and thoroughly reviewed, the VA is more flexible than conventional lending when it comes to credit scores and history. So just remember, if you have less than perfect credit or don't think your credit's perfect, you should still check to see if you're eligible for that VA loan. Number five, and this is an important one, once earned, your VA loan entitlement can be used multiple times. So not just once. You can use your VA benefits more than once. You could even have, with bonus entitlement, more than one VA loan at a time. So do me a favor. If you've made it this far, please hit the like button. And if you're not a subscriber and you want more loan-related content, please hit the subscribe button now as we bring content on a regular and reoccurring basis. So with that, let's get into number six, no prepayment penalties. You can pay off your VA loan at any time, early, without penalties. And that's important to know. If you have a plan to pay that loan off early, then you can pay it off early without any penalties. Number seven, competitive interest rate. This is a great one. VA loans often offer lower rates than conventional or even FHA loans. So not only is it great for the first-time home buyer, it doesn't have mortgage insurance, it could potentially have lower interest rates to save you on that monthly payment. Number eight, property type is flexible. So VA loans aren't just for single-family homes. They can be used for condos and even some multi-unit properties, I believe up to four units. Obviously, you have to qualify and be eligible, but this is a great benefit if you're looking to do something maybe a little bit different, like a duplex or a four-unit property. Closing cost limits. The VA limits what the borrower can be charged in closing costs. It protects you from excessive fees, and this is important. It protects you from a lot of junk fees that certain lenders may charge on conventional loans. And so the VA makes sure that you're not overpaying for the loan. Now, they don't set the interest rates and they don't set the fees, and it's always best to shop around that the VA has things that are called non-allowable fees that are not allowed to be charged to the borrower. And number 10, and this is a big one, the VA loans are assumable, meaning someone else can take over your loan under certain conditions, and it has to be pre-qualified by the servicer typically, but this is a potential game-changer if you sell in a high-interest market. So with that all in mind, while VA loans have many, many benefits, these are the top ones that came to my mind. If you have more questions about VA loans, then please, please reach out to us. We have some contact info below. We are your local, veteran-owned, operated, and focused mortgage lender. Thank you again. Talk to you soon.