Buying a home is the pinnacle of the American dream for many people in this country, and that includes the people who have rendered services in the military. And yet, many veterans believe that they need to save for many years before they can come close to achieving this dream. It is a sad reality that they are often ineligible for the loans that are required to do so. Or is that truly the reality of the situation?
It’s true that conventional loans do come with a list of requirements that can be difficult to qualify for. However, there is a loan program that uniquely caters to veterans and drastically lowers the cost of payments they need to make: VA home loans. By using these loans, veterans can fast-track their home buying process without sacrificing time and comfort in the process.
Here are just a few reasons why should you buy a home after separating from the military:
One excellent reason to buy a home is to truly complete the transition process into civilian life. A home is a place of stability to return to. This is especially true for veterans, who have spent some amount of their lives in hard service. Buying the right house will especially come in use during said veterans’ retirement years.
Advantages of VA Home Loans
Veterans are poised to take advantage of the VA benefits offered by these loans. The loans are flexible, and come armed with some significant financial benefits. Additionally, they are at an all-time high in terms of average loan amount and guarantee amount. The foreclosure rate is also the lowest of all the programs.
There’s No Mortgage Insurance At All
VA mortgage loan benefits include the total absence of a private mortgage insurance (which is required by FHA loans in addition to either a down payment or a monthly mortgage payment). However, veterans will have to pay the VA Funding Fee, which is a set fee applied to every loan purchase or refinance.
The Ease of Process
There are only two pieces of certification that need to be provided in order to process and close VA home loans – a Certificate of Eligibility and Notification of Value on the appraisal. And some VA lenders can even help issue the Certificate of Eligibility before the loan process begins. It typically only takes a maximum of 14 days for the loan to be closed.