It seems like everyone is looking for a simpler life these days. Whether it’s due to the economy or just an urge to live a more fulfilling and easier life, simplification can absolutely have positive emotional and financial benefits. Giving away unused items, growing a garden, and not spending as much money on entertainment are some of the common ways that most people simplify, but did you know that the type of loan you use to purchase a home can possibly have a greater impact on your pared down life than any other step? This is where VA mortgage loans come in.
Most mortgages are full of paperwork and stress. Between the mountains of paperwork you’ll have to fill out to qualify for the loan and the pages and pages of financial information you’ll have to provide, even just getting the loan itself can be an incredibly difficult process. Traditional mortgages generally require about 20% of the purchase price as the down payment as well as $6,000 to $8,000 in closing costs (for things like surveys, appraisals, loan fees, copies, lawyer fees, etc), so in addition to lots of paperwork, you can expect to provide a lot of cash. In fact, if you purchase a $200,000 house, you’ll most likely shell out $50,000 by the time you’ve gone through the buying process. And that’s not even taking moving expenses, new furniture, or new home repairs into consideration.
Stressed out yet? You’re absolutely not alone. But the good news is that if you’re an active-duty service member or a veteran of the US armed forces, you most likely qualify for a loan underwritten by the Department of Veterans Affairs and may not have to even go through the traditional lending process. VA loans are easily some of the most accessible and functional loans on the market, and the great news is that the program has several loan products and credit standards that are more relaxed than typical loans.
The VA loan program was designed by the Department of Veterans Affairs to ensure that those who have served our country could afford to purchase a home, even if they may not normally qualify for a home loan. To this end, the credit and financial requirements of the VA loan program tend to be less stringent than most loans. Even service members with credit problems or past bankruptcy may be able to qualify for a loan provided that, in the case of bankruptcy, excellent credit has been maintained since the discharge. What’s more, the program has highly competitive interest rates and generally matches the rates traditional lenders give buyers with excellent credit.
VA loans boast several financing options, including fixed rates and adjustable rate loan products. And if you’re looking for simplicity in your loan process, look no farther than the VA. Loans underwritten by the VA mortgage loans require less paperwork than traditional programs and if you ever need to refinance, the program has a streamlined option that requires very little in the way of documentation. Borrowers can also choose from a zero down payment option, which is a rarity in these tight economic times, or a low down payment option with the possibility of rolling closing costs into the loan amortization.
Zero down payment? Less paperwork? Not having to come up with much, if any, cash for closing? That certainly sounds simpler, doesn’t it? On top of all these benefits, one great thing about VA loans is that you can apply for them with any traditional lender you’d like. Since the VA guaranties the loan and doesn’t actually execute it, you can use your choice of bank to process your loan. Loan limits do apply, but are adjusted based on your area’s cost of living and the type of dwelling you’ll be purchasing, so check with your lender of choice to get the limit that applies for your situation. For more information on the VA program, visit www.va.gov today!
Adam Gibson is an author of Accrued Interest, a popular financial world blog. Check out Accrued Interest for the latest on the bond market, treasuries, mortgages and other financial news
Related posts:
- How Title Loans Can Help Instead of Hinder Raising a family in America’s cities is getting tough. With...
- Life Insurance… Not Just For Death Anymore At first glance, the decision to purchase a life insurance...
Related posts brought to you by Yet Another Related Posts Plugin.
Personal Finance