If you’re a military member or veteran, you might consider a VA mortgage as a financing option when buying a home in 2023. A VA mortgage is a type of mortgage that is guaranteed by the Department of Veterans Affairs (VA). These loans are specifically designed for military members, veterans, and their families and offer a number of benefits compared to other mortgage products. Below, we will detail out what those benefits are.
One of the main benefits of a VA mortgage is that it’s easier to qualify for than a conventional mortgage. VA loans have more lenient credit requirements and don’t require a down payment, which makes them a good option for borrowers who might not qualify for a conventional mortgage.
Another advantage of a VA mortgage is that it offers lower interest rates compared to other mortgage products. Because the VA guarantees a portion of the loan, lenders are willing to offer lower rates to VA borrowers, which can save you money over the life of the loan.
VA mortgages also come with no mortgage insurance requirement, which can save you hundreds of dollars per month compared to other mortgage products that require mortgage insurance.
In addition to the financial benefits, VA mortgages also offer a number of non-financial benefits. For example, VA loans come with a number of consumer protections, including the right to request a reassessment if you believe your mortgage servicer has made an error.
VA loans are also assumable, which means that if you sell your home, the buyer can take over your mortgage and continue making payments. This can be a big advantage in a rising interest rate environment, as it allows the buyer to lock in a lower rate.
VA loans also require no money down if you are in good standing with the VA. Typically, anyone who has had an honorable discharge from any of the military branches is eligible for $0 as long as they have not defaulted on a VA loan in the past.
Overall, VA mortgages offer a number of benefits to military members and veterans, including lower interest rates, no down payment requirement, and no mortgage insurance requirement. If you’re a military member or veteran and are thinking about buying a home, a VA mortgage might be a good option to consider as these programs normally carry the best interest providing a lower monthly payment to you and your household.