Members of the military service have a great opportunity in the VA loan program to speed up their dreams of owning a home. The program provides them with affordable mortgage loans to buy homes.
The federal government is open to rewarding your dedication. It will give you, as a current or former member of the military, a leg up in your efforts to own a home. The VA loan program puts you close to your home-owning goals by providing you with super friendly mortgage terms.
If you have put in at least six months of service in any of the disciplined forces, you are eligible for the program. However, you can use it only to buy a primary residence, not a vocational or investment property.
Low entry barriers
In the world of the conventional mortgage, credit score reigns supreme, making it hard for most people to own a home. If your score falls below the 700 mark, you will pay a small fortune in interest on your home mortgage. Not with a VA loan. You will get a home loan with a credit score as low as 620.
Banks will turn you away if your score falls below 620. Best of all, you’re eligible to borrow up to $424,100 without putting any down payment on the home. Again, if you have to put down a deposit, you’ll only need to come up with 10 percent of the home total home price.
Build equity more quickly
It’s every homeowner’s dream to build equity in their home and speed up the process of being free and clear. The VA loan is committed to helping you achieve both of these goals. For starters, you won’t pay the dreaded private mortgage insurance, which lowers the home’s cost by up to 1.5 percent.
Again, your lender will not punish you for making an extra payment to clear off the loan more quickly. Each additional payment goes toward lowering the principal amount, which helps you build equity quickly.
If you are a veteran or an active duty member of the military, you have an excellent chance of realizing your dream of owning a home. With the help of a VA loan, you can escape the common barriers and own your home quickly.