WHAT IS A VA LOAN MORTGAGE?
VA Loan Benefits
You can purchase a home with 0% down. This is by far the most compelling reason to apply for a VA loan. Since these loans are backed by the U.S. Department of Veterans Affairs, lenders are able to allow no down payment. This helps make homeownership even more attainable for our military members and allows them to buy a house without having any cash on hand.
There is no private mortgage insurance
On a conventional loan, you need to put down at least 3% down and anything less than 20%, forces you have to take out Private Mortgage Insurance (PMI), which is an additional monthly expense on top of the mortgage payments. So whether you put nothing down or 19% down, you never have to pay PMI. This allows veteran buyers the opportunity to afford a home and save money immediately.
Rates are lower
Since the VA backs these mortgages, there is less risk for mortgage lenders, so rates can be lower than conventional loans. This helps make VA loans even more affordable than conventional loans.
Your benefit can be re-used and used whenever
Whether you are currently serving or served in the military 40 years ago, you can still use a VA loan to buy a home. Plus, it can be reused. For example, if you bought a starter home and are ready to move to a larger home, you can re-use your benefit for your new home purchase. It’s the loan that keeps on giving!
Not the right fit for you?
Wheatland Bank offers many additional mortgage products for you to consider.
Contact a member of our team today and we will be happy to answer any questions you may have.
We will also work with you to identify the right loan for your situation.