Our REALTORS® know that no matter what your homebuying goals are, the process of getting a loan can seem intimidating. Whether you're looking at Mansfield or Ashland homes for sale, the question of financing looms large for most buyers.
If you're a U.S. military veteran, the Veterans Administration loan program may be a good fit for you.
Known popularly as the "VA home loan," it's one of the biggest benefits offered to America's veterans. It grants a wide range of perks compared to conventional loans, including no down payment and attractive rates. There are many other advantages that you might qualify for.
When you use a VA loan, you aren't getting funds directly from the U.S. government. Instead, the VA sets standards that lenders are required to follow in order to participate in the program. In exchange, if a borrower defaults, they are compensated for some of the value they stand to lose.
A VA home loan offers the following great perks:
At times when conventional mortgage rates are rising, VA home loans are particularly attractive. If you compare lenders, you'll often find that choosing a VA home loan will save you thousands of dollars over the course of your mortgage.
Though many current servicemembers and veterans qualify for a VA loan, not everyone takes advantage of it. One of the reasons why is that some of the program details change on an annual basis. This can make it seem much more complicated and confusing than it actually is.
The key requirements are:
VA home loans no longer have a value limit for qualified buyers, so first-time loan borrowers don't need to worry about a specific cap for their loan amount. Subsequent loans can be subject to caps.
Almost all borrowers will need to pay funding fees established by the VA based on the details of your transaction. The funding fee varies significantly, but it can range anywhere from 0.5% for refinancing to 3.6% for some larger home purchases. Rates change based on the value and type of loan, the amount of your optional down payment, and whether you've had previous VA loans.
Some borrowers are exempt from the funding fee, including Purple Heart recipients on active duty, veterans with service-related disabilities, and some surviving spouses.
Contact us today to learn about real estate opportunities in Ohio.