Mobile Menu Locations Contact

The Latest from Columbia


9 Perks of Being a Veteran When It Comes to Loans

by Kimanh Moreau | Dec 28, 2018

Military-Blog3-Img1

Being a current or former serviceman or woman has its perks. When it comes to buying a new home, access to Veterans Administration (VA) loans is high on the list. These government-backed loans often offer a lot to the people who protect and serve.  Let’s take a closer look at the benefits of a VA loan.

  1. If you’re a VA loan eligible homebuyer, you are not required to have a down payment in most cases. Traditional loans for private citizens generally require a five percent down payment, and Federal Housing Administration (FHA) loans require 3.5 percent. Many laud this benefit as the number reason to pursue a VA loan and that’s why it kicks off our list.

  2. With a VA loan there’s no monthly mortgage insurance premiums or PMI to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Buyers from the private sector typically need to consider the cost of private mortgage insurance unless they’re making a down payment of 20 percent or more.

  3. There’s a limit on buyer's closing costs. With a VA loan, the seller can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions. It’s important to note the seller is not required to pay any of closing costs, so this is a point of negotiation between buyer and seller.

  4. Hands down, VA loans continue to have the lowest average interest rates of all loan types.

  5. There are no prepayment penalties so VA buyers can pay off a loan early without any financial repercussions.

  6. Two refinance options exist in the VA loan program. The first allows homeowners with existing VA loans the option to lower their monthly payment with a new interest rate. The second allows eligible homeowners who financed their property with a loan other than a VA loan to refinance into the VA loan program.

  7. Even though a veteran may have already used their loan benefits, it’s possible for them to buy another home with VA financing using remaining or restored loan entitlement. Determining your Certificate of Eligibility is the key to your entitlement picture and is an important factor to discuss with your VA lending expert.

  8. You may be able to transfer your mortgage payment to a new buyer, which can be a big benefit in an environment of rising interest rates. This is an assumable mortgage, and is typically subject to VA and/or lender approval.

  9. If you have a VA loan and are struggling to make your mortgage payments, there’s help available for you, The VA loan program offers foreclosure avoidance advocacy with a full staff who advocate on behalf of homeowners to find alternatives to foreclosure.

Now that you know more about the benefits of pursuing a VA loan, you’re ready to have a conversation with us about how we can help you access a VA loan. From assessing eligibility and finding the right set of interest rate to determining your down payment and closing cost benefits, we know what paperwork the loans will require, and can even help those who may be deployed overseas with remote closings.

We are proud to serve those who are proud to serve. Let us help you make your home ownership dreams come true!



 

Share:

connect nearby or online

Click to Share Your Location

We'll find a branch near you. You can also visit the locations page or contact us.

Enter a zip code to find the
nearest branch
submit

Connect with CB

Consider This

May we interest you in...



Follow Columbia Bank