VA Financing Options

[This is a guest post]

Purchasing a home can be an exciting and frightening experience. Making the decision to take the risk and invest in a home can seem dangerous, but with high risk comes high reward. Fortunately, home loan rates are historically low and lenders are helping people get into homes for prices and at rates that would have previously been impossible. Even those who are making payments on a mortgage have the option to refinance and save thousands over the life of their loan. It goes without saying, then, that now is a great time to purchase a home and make an investment in real estate.

Home buyers and current home owners are already enjoying the lowest rates in history; options get even better for those who have served in the US Armed Forces. As part of the benefits given to Veterans, they are eligible to receive home loans that are even lower cost than traditional mortgages and refinances. These loans are available for the purchase of a new home as well as for the refinancing of an existing property. US military veterans who qualify for a VA loan are able to finance up 103% of the cost of the home, or up to $719,000, with no down payment.

Some qualifying veterans may even be able to finance up to $1,094,625 is certain “high-cost” counties. While these loans don’t require a down payment, the interest rates get even lower if one is made. Additionally, there is no need for private mortgage insurance, because the loan is guaranteed by the Department of Veteran Affairs. Additionally, the closing fees and any associated costs can be rolled into the cost of the loan and paid off over the agreed upon term of the loan. This makes getting into a property easy and affordable, as there is no associated up-front cost.

For veterans who already have a home and a mortgage, there is the option for them to refinance their property and apply for a lowered interest rate. Homeowners have two options when refinancing. They can choose a VA refinance or can apply for a cash-out refinance. A VA streamline refinance enables homeowners to refinance and get a lower home rate without going through some of the time consuming processes for a refinance, like a home appraisal.

A cash-out refinance allows homeowners to borrow money against the equity built in their home and refinance their loan to pay off the borrowed amount over time and at a lower interest rate. Both are great options, and the best choice depends on the needs of the homeowner. Whether you are a veteran of the US Armed Forces or not, you have the ability to become a homeowner, or save money on your current property, and enjoy the lowest rates in history. Now is the time to seek out great opportunities and make the move to invest in not just real estate, but your future as well.