In honor of veteran’s day, I thought I should educate my readers on the basics & benefits of VA Loans.

1.        These loans allow veterans to borrow up to 100% of the funds needed to purchase a home.

2.       VA loans allow veterans to refinance up to 100% of the funds too!

3.       The VA guarantees a percentage of the loan and doesn’t require vets to pay PMI (Private Mortgage Insurance).  Mortgage insurance is generally required if less than a 20% down payment is used with conventional financing and will account for significant monthly savings.

4.       Credit score and income guidelines for VA loans are less stringent and allow for higher debt-to-income ratios compared to conventional financing.  Higher ratios mean more vets can qualify.

5.       No cash reserve requirements are demanded of veterans.  Therefore, vets can purchase or refinance without any savings or cash reserves in the bank.  Conventional financiers like to see anywhere from two to six times of the borrower’s monthly mortgage payments banked before loaning the money.  This lifted qualification allows more veterans to become homeowners as well.

6.       Closing costs are significantly lower with VA loans because the VA guidelines don’t allow for “junk fees” that are traditionally added on to closing statements to pad the broker’s pocketbooks, saving veterans money, yet again.

7.       Finally, after buying a home, veterans can claim a veteran’s exemption on their taxes as well, increasing their savings here as well.

Given this long list of advantages and savings, it certainly pays to exercise your veteran’s rights and buy some property.  Simply consult your mortgage broker to determine if they handle VA loans.  Keep looking til you find one!  These benefits are too life-enhancing to leave sitting on the table unclaimed.