Top 10 biggest benefits of a VA home loan:

1. It's easier to qualify for VA loans

Of course you must be a veteran or active duty military and make enough income, but the Dept. of Veteran Affairs makes other aspects easier to qualify.  Your probably eligible if one of the following is true:

- You've served 181 days of active duty during peacetime.

- You've served 90 days of active duty during war time.

- You've served six years in the Reserves or National Guard.

- Your spouse was killed in the line of duty and you have not remarried.

2. You can use your VA Home Loan Benefit more than once.

Many Veterans are under the false assumption that VA Loan benefits can only be used once.  In fact, you can use your benefits throughout your life-time to purchase or refinance.

3. VA loans don't allow a prepayment penalty

A VA loan won't restrict your right to sell your home or refinance.  There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home.

 

4. You can Refinance your VA Loan any time.

You can refinance your existing VA loan into another VA loan via the agency's Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non-VA loan at any time, free up funds to, consolodate debt, or make your home more energy efficient, do repairs or improvements.

5. VA loans have a government guarantee

The federal government guarantees that a portion of the loan will be repaid to the lender even if you're unable to make payments for whatever reason which enables lenders to offer VA loans with exceptional terms.

6. No mortgage insurance for VA loans because they are guaranteed

On a typical mortgage, if you make a down payment less than 20 percent lenders require you to pay  private mortgage insurance (PMI) for conventional, or a mortgage insurance premium (MIP) for an FHA loan.  This protects the lender in the event that you default on your loan.  VA loans require neither a down payment, nor mortgage insurance. 

7. You can shop and compare VA loans with different lenders

VA loans are neither originated nor funded by the VA, nor are mortgage rates set by the VA itself.  VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions and mortgage lenders -- each of which sets its own VA loan rates and fees, fixed or adjustable rates.  It can be used to buy a house, condo, new-built home, manufactured home, duplex and other types of properties. 

8. VA loan closing costs are lower

The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. You can use the money saved can be used for home improvements, furniture or anything else.

9.  Disabled Veterans do not pay funding fees.

VA funding fees are waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.

For other no-disabled VA eligible home-buyers, funding fees can be financed with the loan, so no is due at closing.

10. VA loans are assumable

Most VA loans are "assumable," which means you can transfer your VA loan to another VA-eligible home buyer.  This can be a viable selling point-- especially if mortgage rates are rising, if your VA loan has today's low rate and market rates rise in the future.

More facts about VA loans:

VA loan eligibility. Contrary to popular belief, VA loans are available not only to veterans, but also other classes of military personnel. The list of eligible VA borrowers includes active-duty servicepersons, members of the National Guard, Reservists, surviving spouses of veterans, cadets at the U.S. Military, Air Force or Coast Guard Academy, midshipmen at the U.S. Naval Academy and officers at the National Oceanic & Atmospheric Administration. A minimum term of service is typically required.

San Diego and Surrounding Areas for over 30 Years.

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