A Zero Down VA Home Loan creates a new opportunity for American veterans and active duty servicemen and women. These men and women that have served our country are now afforded the same opportunities they have afforded us--home security and affordability. This is what makes the Zero Down VA Home Loan the best loan in the history of America.
Before you assume that you’re ineligible for or cannot afford a Zero Down VA Home Loan, take time to read this article. We have taken time to help you better understand the loan inside and out. You may just be surprised at how wonderful the program is!
We hope you will be picking out house paint soon! Better yet, hire someone to do it for you!
Zero Down VA Home Loan: An Overview
VA loans were introduced as part of the GI Bill in 1944. They have become more popular over the past few years. In the first quarter of 2019, 8% of home purchases were made with a VA loan. Just as it states, the Zero Down VA Home Loan really is a no-money down home mortgage loan.
The US Department of Veteran Affairs outlines the specific eligibility requirements for the loan:
- You’re an active duty service member or an honorably discharged veteran who has 90 consecutive days of active service during wartime or 181 days of active service during peacetime.
- You have served more than six years in the National Guard or the Selected Reserve.
- You’re the spouse of a service member who died in the line of duty.
Zero Down VA Home Loan: The Amazing Benefits
Veterans and active duty service members are able to reap a lot of benefits with the Zero Down VA Home Loan. Here is a list of the generous advantages that won’t disappoint:
No money down. This may be stating the obvious, but let’s take a quick comparison to what traditional home loans normally require of homebuyers. A conventional loan normally asks that a 5 percent down payment be made, and FHA loans require 3.5 percent.
No need to pay Private Mortgage Insurance (PMI). This loan affords you the sigh of relief from having to pay PMI. Traditional loans PMI can range from 0.5% to 2.25% of your loan. That may not seem like too much of a break, but a simple 1% PMI on a traditional $200,000 loan would add an extra $166 on your mortgage each month!
No limit to how many times you can borrow. If you’re worried that you’ll have to move a few years after buying your home with a Zero Down VA Home Loan, no worries! There’s no limit to how many times a military member can purchase using the Zero Down VA Home Loan.
No minimum credit score requirement. If your credit score gives you the creeps then have no fear. Zero Down VA Home Loans don’t require a specific credit score to apply. Lenders do tend to be more comfortable to someone with a credit score of 620 or lower.
Built-in advocacy. Life happens. The Zero Down VA Home Loan does have a safety net for borrowers in the wake of financial hardship. If borrowers fall behind in making their payment then lenders will try to have interest rates lowered or payments lowered to assist.
No prepayment fine. If you want to pay off your Zero Down VA Home Loan early then go right ahead! No fees to be found there!
You don’t have to be a first-time homebuyer. Unlike USDA Loans, the Zero Down VA Home Loan is not exclusively for first-time homebuyers.
Consider yourself qualified. If you’ve filed for bankruptcy before you may still apply for a Zero Down VA Home Loan after two years have passed since your bankruptcy.
Two refinance options. The VA loan program allows borrowers with existing VA loans the option to lower their monthly payment with a new interest rate. Homeowners who financed their property with a different loan than a VA loan can refinance into the VA loan program.
Zero Down VA Home Loan: Key Takeaways
It may sound too good to be true, but the Zero Down VA Home Loan doesn’t have any strings attached. The US Government created the VA Loan with the wellbeing of veterans and their loved ones in mind. It is important to know the terms of and rates of any loan before applying. If you’re a veteran or an active duty service person looking for a generously affordable way to purchase your dream home then the Zero Down VA Home Loan is the perfect option. We’d love to answer your questions! From us to you and your family--thank you for your service! Happy Memorial Day!
