This article is a guest post from Nick Parsons:
Most people want the opportunity to get into a home at some point in their life. The VA loan program makes this dream a reality for millions of Americans.
One of the biggest set-backs in purchasing a home is the down payment. Most Americans don’t have access to large amounts of money, including amounts needed for down payments. Many traditional mortgage loans require a 20% down payment. The VA loan program is much much different.
When shopping for a mortgage loan, many people ask whether a VA loan is better than a conventional loan. A simple example is that a VA loan for someone whose credit is not excellent and has no down payment is comparable, in regards to mortgage rates, to a conventional mortgage for someone with perfect credit and a 20 percent down payment.
Three of the largest benefits to VA loans are that:
- You are able to qualify for a mortgage without any down payment. Thus, you can easily obtain 100% financing.
- You don’t have to pay for mortgage insurance with VA loans. Mortgage insurance premiums are quite expensive. You won’t have to worry about these when you opt for a VA loan.
- The seller can be responsible for paying up to six percent of the buyer’s closing costs with a VA loan. That is double the amount that is possible with conventional or traditional mortgages.
VA loans allow you to get into a home without having to pay a great deal in out-of-pocket expenses. VA loans minimize out-of-pocket costs and maximize your ability to get into the home of your dreams. You don’t have to worry about a down payment. You won’t be responsible for paying for mortgage insurance. You can have a greater amount of your closing costs paid for by the seller. VA loans can truly make your dreams a reality.