VA Loans: 5 Things You Must Know

The number of people applying for loans to purchase their own homes has been on the rise. However, veterans applying for the loan issued by the US Department of Veterans Affairs (VA) have been on a decline for a variety of reasons.

But this should not discourage you to apply for that VA loan in Ogden, which you can get from institutions such as Wasatch Peaks Credit Union. In fact, you should be encouraged.

Like before its decline, VA loan is still one of the best types of loans one can apply for in his lifetime because of perks that come along with it.

No need for down payment

This is perhaps one of the perks of having your VA loan application approved. As a way of saying thanks to veterans who have bravely fought for the country, the government is helping them get an exemption from the usual down payment required from ordinary citizens when purchasing a property.

This means that veterans can borrow up to $417,000 without any down payment for a home if it is their principal residence.

Competitive interest rates

This is perhaps one of the reasons why 79% of veterans can own their homes. VA loans offer lower and sometimes negotiable interest rates than conventional mortgages. This means the debt-to-income ratio is higher and lower credit scores.

The VA itself does not issue the loan

It is important to note that the institution itself does not issue the loan. Rather, they issue a guarantee on each qualified mortgage loans that would help you in your application on different loan agencies.

Prepay your mortgage

Be able to prepay your mortgage without a penalty fee and break free from the bonds of debts earlier.

Eligibility

Active, reserve, and veteran service members can enjoy VA loans. In some cases, surviving spouses of veterans can also enjoy the benefits. Check with the department to know your eligibility.

Are you a veteran? Know more about VA loans and how you and your family can enjoy its benefits.