Looking for a home mortgage loan company for VA loans?
Get in touch with Elite Mortgage Source today!
Backed by the US Department of Veteran Affairs, VA loans are $0 down mortgages available to service members, veterans, and certain military spouses. You can apply for the loan through a credit union, a bank, or a mortgage loan company. The loan application process is the same as that for other kinds of loans. Lenders will evaluate your debt, credit, and income to determine the interest rate that will be charged.
Features of VA Loans
Here are some of the features and benefits of VA Loans.
- No Down Payment – Essentially, the biggest advantage of VA loans is that qualified veterans can buy homes without making a down payment. Consequently, this allows service members and veterans to purchase a home without spending years saving for a lump-sum payment.
- No Private Mortgage Insurance – Private mortgage insurance is the insurance that safeguards lenders in the event that a borrower defaults. Several traditional lenders necessitate borrowers to pay private monthly mortgage insurance unless they make a minimum down payment of 20 percent, which is tough for a lot of veterans. However, since VA loans are backed by the government, they don’t require you to buy private mortgage insurance.
- Competitive Interest Rates – VA loans have the lowest average fixed rates. As per data from Ellie Mae, VA loans have had the lowest average fixed interest rate on the market for over five consecutive years. VA interest rates are normally 0.5 – 1 percent less than traditional interest rates. This can allow veterans to save each month and during the loan period.
- Flexible Credit Requirements – The Department of Veteran Affairs doesn’t enforce or set a minimum credit score. Nevertheless, many VA lenders make use of some benchmarks to evaluate the probability of a borrower default. These benchmarks can differ; however, the minimums are generally less than what borrowers require for traditional mortgages. Veterans or service members don’t need perfect credit scores to obtain home loans at competitive interest rates. Moreover, VA loans are even more flexible when re-bouncing after a short sale, foreclosure, or bankruptcy.
- No Penalty on Prepayment – Paying off certain loans before maturity can lead to a prepayment penalty. The reason for this is lenders miss out on further opportunities to collect interest payments. Hence, the penalty is a method for lenders to make up for some of that money. However, VA loan borrowers can pay off their loan whenever they like without having to pay a prepayment penalty. Borrowers can freely consider future refinancing options and home purchases with the absence of a prepayment penalty.
Contact Elite Mortgage to Secure VA Loans Today!
If you qualify for a VA loan and wish to avail the benefits outlined above, our team at Elite Mortgage Source can help you out! We will take care of the entire process for you and address your concerns in the best possible manner.
