Understanding The Differences Between The VA Loan And Traditional Mortgages
Are you a veteran, or are you currently serving in the US military? Are you looking to buy a new home? If so, there’s every chance that you’re exploring your options and considering mortgage offers. If you haven’t come across a VA loan yet, don’t proceed any further! This type of loan is designed to benefit both active and retired military homebuyers. If you’re not familiar with the concept, here are some of the main differences between loans guaranteed by the VA and a traditional mortgage.
Usually, when you buy a house or condo, you’re required to put down a substantial payment. Typically, with a conventional mortgage, the down-payment can be up to 20% of the value of the property. With a VA loan, you don’t have to put a deposit down, making it much easier for military personnel to get onto the ladder.
Most buyers are required to buy PMI (private mortgage insurance), but this is not essential for veterans, as the loan is backed by the government.
Interest rates can vary hugely among lenders. With a veteran’s mortgage, you can benefit from some of the most competitive interest rates in the market.
It can be very difficult to qualify for a traditional mortgage without a secure income and money in the bank. With this specific type of loan, buyers with a military background have a much better chance of being approved.
Buying a house and putting down roots is an incredibly exciting proposition for veterans and active military personnel. With the help of a loan backed by the government, a process, which can be convoluted, becomes a lot simpler. If you’re on the hunt for a home, why not look into VA mortgages today?