Many people believe purchasing a home requires a hefty amount of cash up front, but there are many low to no down payment options available to homebuyers. One of these options is specifically geared toward members of the military – it’s called the VA loan. A VA loan is backed by the Department of Veteran’s Affairs and comes with a plethora of benefits, including no down payment and no mortgage insurance.
Am I Eligible For a VA Loan?
If you’re active duty military, a retired veteran, a member of the National Guard or a Reservist, you may qualify for a VA loan. You will need to work with a lender that offers VA loan options and obtain a VA Certificate of Eligibility. Your C&F local industry expert will walk you through the eligibility requirements and the steps of the loan process for buying a home with a VA loan.
Why Should I Consider a VA Loan?
If you’re active duty military, chances are, you might move every few years. For many homebuyers, the rule of thumb is to plan to live in the house for at least 5 years in order to make your purchase worthwhile – but this isn’t necessarily true if you take out a VA loan. If you’re able to put 0% down and have lower mortgage costs overall, you can begin building equity in your home right away that will be beneficial when it comes time to sell and move to a new city. Here are the main benefits of using a VA loan:
1. No Down Payment
One of the biggest benefits of a VA loan is the fact there is no down payment required, since coming up with a large sum of cash is one of the biggest hurdles to homeownership for many Americans. Being able to take advantage of 0% down can open up an opportunity for buyers who may not otherwise be able to purchase a home.
2. No Mortgage Insurance
If you have a VA loan, you can also skip the monthly mortgage insurance that is generally required when putting down less than 20% – this adds up to a pretty significant savings over time.
3. Variety of Loan Options
Like other mortgage products, a VA loan offers a fixed-rate and an adjustable-rate option. This offers you flexibility to choose what works best for your situation and factor in the potential of moving in a few years. Additionally, a VA loan can be used for a home purchase as well as a refinance. Sometimes homeowners will refinance when rates are low to save on their monthly mortgage payment or to put the equity they’ve gained toward home projects or paying down debt with a cash-out refinance.
At C&F Mortgage, our team is focused on you and we’re here to help you navigate your home buying journey from start to finish. Get in touch with one of our local industry experts today to learn more about the VA loan process.