Buying a home is one of the biggest steps that anyone can take in their life. But the path to home ownership is practically impossible without crossing one huge bridge - the mortgage loan. Securing a home loan is something that will be needed in order to purchase your Sacramento home. And among loans, the VA loan is one option that anyone who is eligible should consider. It offers numerous benefits that veterans and their spouses can't afford to ignore.
What Is The VA Home Loan?
Every year, more than 700,000 VA loans are extended to veterans, totaling billions of dollars in money loaned out for a home purchase. These loans are designed specifically for veterans and are guaranteed by the US government. That guarantee means that while the government doesn't actually provide the loans to the borrower, they do back the loans up. This gives lenders more confidence and allows them to extend loans to those who may not have qualified before.
Simply put, for any vet who is active duty or honorably discharged after serving some time in the armed forces, the VA loan may be the absolute best path to home ownership that is available. If you're looking to purchase a Sacramento home, check out these unbeatable VA loan benefits:
No Down Payment
90 percent of homebuyers using the VA loan don't have to put any money down. It's one of the few remaining zero-down lending programs left today.
Conventional loans and FHA loans require that you pay mortgage insurance. This can add as much as $170 or more to a monthly payment. But veterans who use the VA loans pay no mortgage insurance at all, saving themselves thousands.
Great Interest Rates
Interest rates with a VA loan are often as much as 1% lower than conventional loans will be.
Better Credit Requirements
With a VA loan, you need less credit to secure your loan. Credit scores for a VA loan can be up to 50 points lower than traditional loans on average.
No Prepayment Penalties
With traditional loans, paying off a loan early can often lead to penalties and fees. VA loans have no such penalties.
Usable Multiple Times
You aren't limited to a single use of the VA loan program. You can use it over and over throughout your life if you qualify, making it one of the best loan options available for vets who plan on buying more than one house over the course of their lifetime.
Getting Your Loan
Again, however, it's important to remember that the government doesn't actually issue the loan - they only guarantee it. As such, you need to find an approved lender who offers VA loans in order to take advantage of the benefits listed above. Our team is here to provide you with the loans you need. At AP Mortgage, we take pride in helping those looking to buy a Sacramento home with the right loan for their needs. Contact us today to find out more and turn your dream into a reality.