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Did you know that there are special home buying benefits available to eligible military personnel? VA loans provide a unique home financing option to eligible Veterans, active duty military, Reservist, members of the National Guard, and qualifying spouses. These loans are backed by the U.S. Department of Veterans Affairs (VA), and offered by private mortgage companies, like Evergreen Home Loans™. One of the notable benefits of a VA loan is that the loan program is designed to make purchasing a home more affordable. Eligible borrowers can receive benefits that may reduce the upfront cost to purchase a home, could save money over the term of the loan, and refinancing options that could reduce monthly payments. Here’s a closer look at some of the cost saving benefits a VA loan provides:
- No down payment requirement. Perhaps the most popular benefit of a VA loan is that there is no down payment requirement. This reduces the upfront cost needed to purchase a home which could make purchasing a home more affordable.
- Fewer closing costs. Closing costs are transaction fees paid when the sale of a property closes. For loans purchased with a VA loan, these costs can be less than with other mortgage options and in some cases may even be paid by the seller. This benefit further reduces the upfront cost to purchase.
- No monthly Mortgage Insurance payment. Mortgage Insurance (MI) is a requirement on most low down payment loans. It is a monthly fee paid with your mortgage payment that is tied to your loan until certain criteria is met. One benefit of purchasing a home with a VA loan is there is no Mortgage Insurance requirement. This could reduce monthly mortgage payments and save money over the term of the loan when compared to the monthly payment of a low down payment loan that requires Mortgage Insurance.
- Refinance for payment stability. The VA offers a refinancing option called an Interest Rate Reduction Refinance Loan (IRRRL). This financing option is often referred to as a “streamline” refinance and allows eligible homeowners with a current VA home loan to reduce their monthly payment by refinancing to a lower interest rate or refinance from an adjustable rate mortgage to a fixed rate mortgage and potentially stabilize their monthly payments.
- VA Loan benefits do not expire. Eligible borrowers can use a VA loan to purchase a home more than once if they sell the home they bought with a VA-backed loan
Evergreen Home Loans is proud serve our military community by offering VA loans to eligible Veterans, active duty service members, Reserves, members of the National Guard, and qualifying spouses. If you’re curious to see if you or someone you may know could benefit from a VA home loan, reach out to one of our knowledgeable, local loan officers today to get your questions answered.
