A VA loan offers some amazing solutions for veterans.
Here are the top 5 benefits of getting a VA loan
There’s No Down Payment
Perhaps the biggest benefit of getting a VA loan is that there is no down payment required. Almost every other home loan program requires you to put down some sort of down payment but not the VA loan. The opportunity to not have to put any cash down and finance the whole price of the house is one that you cannot let slip away.
There’s No Mortgage Insurance Required
When your mortgage payment is below 20%, it is standard that lenders will require you to have mortgage insurance. PMI (private mortgage insurance) and MIP (mortgage insurance premium) for an FHA loan are designed to protect lenders if you for some reason cannot pay your loan. The lack of a down payment being required and the fact of no mortgage insurance being required is why the VA loan is an excellent option for your home.
However, there is a VA Funding Fee that is dependent on a number of factors.
There’s a Government Guarantee
The VA loan is highly favorable because the terms of it satisfy everyone involved. The government guarantees that some of the loan will be repaid to the lender regardless of if you make your monthly payment or not. Borrowers are often enticed because lenders can offer amazing terms for the VA loan.
You Get To Compare Rates
The VA does not fund or originate VA loans, which means that the rates are not set by the VA either. A VA loan is offered by mortgage lenders like Sovereign Lending Group, credit unions, banks, and savings and loan institutions. Because of this, you are able to look around, compare rates, and choose the one that works best for you!
There Is No Prepayment Penalty
If you decide that you do not want your home anymore and decide to sell it, the VA will not restrict you. It does not matter how much time you have the loan for, you can sell your home at any time with no pre-payment or early exit penalty. If you decide that you want to refinance your VA loan, there are no restrictions on that either.
About Sovereign Lending Group
Sovereign Lending Group is a mortgage lender based out of Orange County, CA that specializes in supplying a VA loan. Sovereign Lending Group is regarded as the go-to source for all mortgage lending services because of the way we treat people and our dedication to providing excellent service. To learn more about Sovereign Lending Group, visit the website, and follow us on Instagram and Facebook.