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Va loans advantages vs. disadvantages (1)

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There is a lot of misinformation about VA loans which leads many eligible borrowers to use other mortgage programs.

Let's take a look at both the advantages and disadvantages of VA loans so you can decide for yourself.

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Va loans advantages vs. disadvantages (1)

  1. 1. VA Loans Advantages Vs. Disadvantages
  2. 2. VA Loans The VA loan program has remained consistent through the years. As a program designed as a military personnel benefit, it helps eligible veterans become homeowners. However, many will say that the VA loan program has both advantages and disadvantages.
  3. 3. Advantages of VA Loans 1. Competitive VA Mortgage Rates Since VA loans are guaranteed, lenders are able to offer very competitive rates that are usually lower than conventional rates.
  4. 4. Advantages cont... 2. VA does not set credit score minimum The VA does not set a minimum credit score, however, lenders may set their own guidelines that include a minimum credit score.
  5. 5. Advantages cont... 3. VA Loans do not require a down payment The VA loan program has remained consistent and continues to offer a no down payment loan. A down payment is only required when the purchase price exceeds the appraised value.
  6. 6. Advantages cont... 4. Closing costs are limited The VA protects borrowers by putting limits on allowable closing costs. This reduces the financial burden to their veterans.
  7. 7. Advantages cont... 5. Private Mortgage Insurance is not needed Even with a no down payment 100% financed loan, VA loans do not require private mortgage insurance.
  8. 8. Advantages cont... 6. VA Streamline Refinance Homeowners can refinance without the need for documentation, appraisal or credit qualifying. The IRRRL is a simple VA to VA refinance.
  9. 9. Advantages cont... 7. Seller paid closing costs are allowed. 8. Seller concessions are allowed. These can be used to pay off things such as a borrower’s debts.
  10. 10. Advantages cont... 9. VA loans do not have a prepayment penalty fee. 10. VA loans are assumable, a benefit for both the seller and the borrower.
  11. 11. Advantages cont... 11. A VA refinance with cash-out is available. 12. VA provides assistance to borrowers with VA loans in the event of a default due to a temporary financial situation.
  12. 12. Disadvantages of a VA Loan 1. Lack of knowledge about the benefits of a VA loan has led some borrowers to choose a different type of loan. 2. Lack of knowledge leads many sellers to turn away from borrowers who are using VA loans for financing.
  13. 13. Disadvantages continued... 3. Some borrowers are concerned about the VA funding fee without knowing that this can be financed into the loan. 4. Borrowers choose any lender, but not all lenders know the VA guidelines and can lead a borrower astray.
  14. 14. Conclusion There are many more advantages than disadvantages to a VA loan. VA lending has hit record highs in recent years as more borrowers find out about the program. A key factor to a successful VA loan is working with a knowledgeable and experienced VA lender who can put you into the best
  15. 15. cont... VA loan available. For more information, contact Brian Thomas at 1-888-913-5531 or visit: http://veteranhomefinancing.com

There is a lot of misinformation about VA loans which leads many eligible borrowers to use other mortgage programs. Let's take a look at both the advantages and disadvantages of VA loans so you can decide for yourself.

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