VA Home Loans Are the Best Option for America’s Servicemen and Women

Active duty soldiers, sailors, airmen and marines as well as veterans of the United States Armed Forces are at a great advantage when they wish to purchase a home. This is because the virtue of their military service entitles them to the fantastic benefits of a VA home loan. There are ten great reasons why you, as a member of the military should look into this loan.1. Minimal Down PaymentMilitary home loans to not require you to put any money down on the purchase of your home. Though it is always a great idea to put a little money towards this initial purchase, the no money down option is far superior to either the 3.5% required by the FHA or the up to 20% required by conventional banks and lenders.2. Minimal Closing CostsUpon signing the papers to close on your home purchase, most people are hit with a multitude of charges that include, taxes, inspection feed, escrow, insurance and more. However, as a veteran, many loan officers will build the cost of closing feeling into your offer causing the seller to process these fees.3. Optional Closing CostsIf the seller of the home refuses to pay your closing costs, the VA still helps you out. VA loans limit what you need to pay for in the closing process. This means that additional fees such as document preparation, attorney fees, title work, etc. will not be allowed to be put upon you as the buyer with a Military loan.4. Certificate of Reasonable ValueAgain, protecting you, the VA will not allow for the general appraisal to determine the value of the home you want to buy. Instead, it will issue its own certificate that states the value of the home that you buy within six months of your closing.5. InspectionThe VA provides another form of protection by inspecting all properties purchased with a VA loan itself. It will make sure that the major issues such as plumbing, furnace, roof and foundation are up to code before you buy.6. Lower Rates with Streamline RefinanceOnce you own a home with a VA loan, there is an additional benefit offered to you in the form of the Streamline refinance loan. This is a process backed by the VA that allows you to refinance your home without being subject to a credit check or needing to worry about appraisal values.7. No Penalty for Early PaymentA lot of loans that offer a deal in terms of interest rate actually penalize a home buyer for repaying the loan early – since they now make less interest from you. However, the VA does not charge a penalty fee for early payment, they welcome it.8. Capped PointsWhen buying a home, many mortgage brokers and other lending personnel charge a fee for their services. The VA protects you from those who go overboard with these charges by limiting them and reviewing any charges that may be seen as unreasonable.9. Flexibility with Other VeteransIf you for some reason have a need to move and have a friend or family member – say, your child – who is also a veteran and wants to assume your mortgage then the VA will allow you do transfer this without penalty. This is not always the case with conventional bank mortgages and is an excellent bonus for military families.10. Lower Interest RatesThe whole reason that the VA started giving home loans in the 1940s was to encourage ownership among America’s veterans. Therefore, they offer interest rates that are significantly below market value as a rule, they are also all fixed, meaning the rate that you get today will still be the same in 25 years. This makes payments more manageable and puts you in the best possible position to own your own home.