The VA Loan – other than healthcare is the best benefit that we provide our veterans that served our county. Moreover, many of these men and women have served on the battlefield or in combat operations to protect our liberty and freedom. The VA Loan is one entitlement that in my opinion has truly been earned.
The VA Loan is a great mortgage product. It allows the veteran to take out a mortgage with no down-payment up to an amount of $424,100. In addition, there is a little-know Jumbo VA Mortgage that requires the veteran to only have a down-payment equal to 25% of each dollar over the first $424,100 that required nothing from the veteran.
This loan also comes without mortgage insurance. On the other hand, it does have a small-funding fee that can be included in the veteran’s loan amount. Should the veteran have a disability all or a portion of that funding fee may be waived by the Veterans Administration. Furthermore, many counties either reduce or waive property taxes for veterans with disabilities. This reduction or elimination makes it even more favorable for the veteran to become a homeowner.
So why with all of these great features do only about ten-percent of veterans ever use their VA Loan benefit? In fact, my own father didn’t use his until he purchased his last home. There are several reasons and they are all myths that need to be dispelled.
The first one is that VA Loan appraisals are difficult and may not make value. This statement is rampant in the realtor community and totally not true. Actually the appraisals on these loans come out with favorable values. The Veterans Administration want to see veterans take advantage of their benefit and become homeowners.
Next is the myth that VA Mortgage rates are higher. That too is just not true. VA mortgage rates are consistently the lowest of any loan product. In addition many realtors and veterans think that VA Loan have mortgage insurance like FHA loans. We have already dispelled that myth above.
The fact remains, veterans can use a VA Loan and have zero down-payment, no mortgage insurance, and the lowest rates in the market.
If you know a veteran encourage them when buying a home to use this benefit that they earned!
Cary Michael Cox