JoshIf you’re served overseas for your country, then chances are you would be the perfect candidate for a veteran loan. This is a special type of mortgage that has a few benefits that make it easier for servicemen and women to get on the property ladder. If you’re interested in loaning more about veteran loans, check out loans for veterans Phoenix. Here are the main benefits to a Veteran Loan and tips for making the most of them.
1. No Downpayment
Due to the fact that many people returning from service would have very little in terms of savings for a downpayment, the Servicemen’s Readjustment Act was created in 1944 to help those returning from World War II to have a better chance at getting on the property ladder. This prevents a time barrier of months, or even years, in order to save the required deposit, allowing veterans to purchase their home as soon as possible.
2. Low Interest
Whether the veteran chooses to place a deposit or not, VA loans tend to have some of the lowest interest rates around. Usually in order to negotiate a lower interest rate you would have to have a higher downpayment, but for veterans this is possible even with no downpayment.
3. No Insurance Premium Required
Often when you’re working with a lower downpayment, you’ll be obligated to pay out of pocket for additional insurance policies to help guarantee the loan. This can reduce the expenses for having the mortgage by hundreds of dollars per month, paying on the savings directly to the veteran so they can put their money towards their home or elsewhere as needed.
4. More Than Once
The veteran mortgage scheme is available for the veteran to use it as many times as they need. It’s for the purpose of living in the home, so not for investment properties, but so long as the previous mortgage is paid off in the sale, it is possible to get another home using another veteran loan, ensuring they are eligible to all of the benefits again. While I would personally suggest putting as much of the cash from the previous sale into your next home, it can give great peace of mind to know this scheme is available to you for life.
Buying a home is a wonderful thing, and so important for our veterans who have given their service to our country. Thankfully veteran loans exist in order to make the barrier to buying a home even lower for those who have given so much.
