VA Loans are mortgage loans guarantee by the United States Department of Veterans Affairs (VA) and are available to eligible Veterans, Active-Duty Service Members and surviving spouses.
For more than 70 years, VA Loans have made homeownership possible for millions of Americans.
Here are some of the benefits of a VA Loan.
No down payment required. Qualified borrowers in Michigan can purchase a home up to $417,000 without needing a down payment. This is a significant benefit for those who may not have the funds to make a substantial down payment. In comparison, FHA Loans required 3.5% down and Conventional Loans required 5% down.
No private mortgage insurance (PMI). PMI is required on most loan programs if the borrower is unable to put down 20% of the purchase price. VA Loans are the exception! Since the VA guarantees a portion of the loan, lenders do not require borrowers to purchase private mortgage insurance. This can result in significant savings over the life of the loan.
Competitive interest rates. VA Loans typically offer competitive interest rates which can help the borrower save money over the life of the loan.
Easier qualification. VA Loans have less stringent qualification requirements compared to other loan types, making them easier to qualify for.
Assumable. VA Loans are assumable, which means that if the borrower sells the home, the buyer can take over the loan without having to refinance.
If you have questions about VA Loans and their benefits, please give us a call. We take great pride in guiding our Military Veterans and their families home.