The Veterans Affair (VA) home loan program is a benefit that veterans have earned. The mission of the home loan guarantee service is to help veterans attain, retain and adapt their homes.
Let’s talk about some of the benefits:
1. No Down Payment (100% Financing)
Probably the one that comes to mind first is 100% financing. As far as we know, it’s the only program out there that you can get 100% financing on. What that means is that you don’t have to make a down payment.
2. No Private Mortgage Insurance
Another significant benefit that the program offers is that with a VA Loan you don’t pay PMI (Private Mortgage Insurance). That will save you a LOT of money throughout the lifespan of your loan.
3. VA Appraisals: Safe, Secure and Sanitary
Another tremendous benefit has to do with the appraisal. The appraiser goes out, and in addition to determining the value of the home, one of the things the appraiser does is help ensure that the home is safe, sound and sanitary. And that goes back to being a benefit. The VA doesn’t want to put a veteran or their family into a home unless it is safe, sound or sanitary.
4. Home Ownership Retention
Homeownership retention is one of the primary missions of the VA Loan program. If a veteran were to experience financial difficulty down the road, perhaps there was a temporary period of unemployment, the VA will work with the borrower and the lender and bring to bear all the tools they have available to help the veteran and their family members stay in that home.
5. State and Local Taxes
One other thing to mention is not so much a benefit associated with just VA Loans, but it’s important to note that state and local taxing authorities often provide tax relief benefits to veterans. In particular, veterans that have suffered disabilities and are in receipt of service-connected disability income. We’d encourage all veterans, whether they use their VA Home Loan or another home loan product, to check with your local or state taxing authorities to see what benefits may be available to you.
The VA home loan program is a tremendous benefit that you earned as a veteran, so please take advantage of it.
