Accessing a residence you can call personal property is quite enthralling but requires wise choices. This is why a first time home buyer will always have an uncharted sea to paddle around before finally settling for the most inclusive loan that suits his or her dream home.
As long as one qualifies, the VA loan remains the number one sure shot of any programs that veterans can access especially for first time applicants. This is because it has equity through cash-out refinance and is totally free of down payment.
Here is why you will love the VA Loan as a first time home buyer:
No Cash Down at a Home Purchase
Unlike earlier times, many banking institutions are enforcing huge initial deposits with the average commercial rate ranging between 10 and 20 percent, thus dashing the hopes of the majority of first time buyers who would love to own a residence. The VA Loan has unmitigated convenience to a budding family because it coughs out a hundred percent of the total property costs, and one pays but $0 down payment. Other than the chain of civilian USDA guarantee loans, the VA Loan stands out in a league of its own for extending no-down payment mortgages.
It’s Easy to Qualify for a VA Loan
Conventional credit is hard to crack for a great number of would-be first time buyers because the borrowers come shy of showcasing a stable credit history. Fortunately this does not apply to VA loans, which makes it simple to qualify even for first time home buyers.
By virtue of giving the loan a nod, Federal authorities exempt it from the additional Private Mortgage Insurance (MIP) that commercial lenders enforce in independent cases. The government guarantees the mortgage and keeps its word in case of a breach, on behalf of the lender. The interest margin for the VA is usually from 0.5 to 1 percent on the down side of rates for conventional loans. These dual merits are catalysts to substantial savings, as the table below will illustrate.
VA Loan Savings at Closing Based on Conventional Loan Requirements
| Mortgage Amount | 1% Rate of Reduction | Private Mortgage Insurance Savings | Estimates of Monthly savings |
|---|---|---|---|
| $100000 | $63 | $76 | $139 |
| $200000 | $125 | $153 | $278 |
| $300000 | $187 | $220 | $407 |
| $400000 | $249 | $297 | $546 |
| $500000 | $311 | $374 | $685 |
One of the greatest advantages of VA Loans is the ability to lead to huge savings as the chart above shows. Minimal installment remissions together with very insignificant eligibility regimen, alongside the zero down premise, all present the first time home buyers quite a package to celebrate.
You Can Count on us
Our website is the one-stop-shop for updated mortgage information that relates to VA loans, all presented in a unique way. We are also instrumental to serving veterans because they have played their part. Thanks to this rapport, our in-house team has made it possible to accord borrowers a smooth orientation into getting products suitable for first time home buyers or even seasoned mortgagors with existing loans.