You would be shocked by how many of the 17 million U.S. military veterans and active personnel serving their country haven’t taken up Uncle Sam on its offer to help them purchase a home or refinance their existing mortgage to save money.
Are you one of them? Make it your New Year’s resolution to take advantage of this program through the U.S. Department of Veterans Affairs! A government-backed VA Home Loan offered by Benton Capital Mortgage Lending comes with HUGE benefits.
A VA Home Loan specifically focuses on the needs of veterans and service-members and rewards them for their selfless sacrifice. Combined with today’s record-low interest rates, millions stand to reap the financial rewards if they take action soon.
Additionally, new VA loan limits were instituted in 2020, meaning your home-purchasing power recently got much bigger if you have “VA full entitlement” (you’ll have no limit on your loan amount for a mortgage over $144,000). We can easily help you calculate your current VA entitlement figure! Otherwise, loan limits are approximately between $356,000 to $822,000 starting in 2021, depending on your locality.
More importantly, here are 10 advantages of utilizing a VA Home Loan whether you are purchasing a house for the first time, moving to another property, or refinancing your current mortgage. These loans offer:
- 1) The most competitive interest rate with Benton Capital Mortgage Lending, and a much lower marketplace rate on-average since they are offered through a government-backed program.
- 2) No down payment in most cases for purchase loans (up-front money toward your home purchase), and easier borrower credit requirements.
- 3) No monthly mortgage insurance premiums or private mortgage insurance (PMI).
- 4) Lower homebuyer closing costs, and limits to what borrowers can be charged.
- 5) The opportunity to roll your “VA funding fee” into your mortgage.
- 6) The ability to refinance a non-VA loan into the VA mortgage program.
- 7) The opportunity to: ask a home seller to contribute up to 4 percent of the mortgage amount to cover some of the closing costs; ask your lender to cover some of the closing costs; seek closing cost assistance through state homebuying programs created for veterans and first-time buyers.
- 8) The right to become a VA borrower for life. In most cases you can use VA mortgage programs forever, and sometimes you can have more than one VA loan.
- 9) Eligibility of financing for spouses of service-members who died in the line of duty or from a service-related disability.
- 10) A treasure trove of VA resources to help you stay in your home if your financial circumstance changes in the future.
You can review all types of VA Home Loans here, including purchase mortgages, refinance mortgages (called Interest Rate Reduction Refinance Loans or IRRRLs), and cash-out refinance loans.
To qualify for a VA Home Loan, usually a military veteran or service-member must have 90 consecutive days of active service during wartime, or 181 straight days of service during peacetime, or six years in the national guard or reserves of a particular military branch. You can find out if you're eligible here.
Also, a VA mortgage comes with an additional closing cost called a “VA funding fee” of between 1.4 to 3.6 percent on the amount borrowed (depending on your circumstance). This special fee that non-VA borrowers never have to pay helps partially fund the “government backed” part of the VA borrower program, and many VA borrowers can roll it into their mortgage.
Benton Capital Mortgage Lending is your locally trusted Colorado Springs lender who knows the VA Home Loan program, has originated hundreds of VA mortgages, and can guide you through the entire process. Contact them TODAY!