There’s no greater honor than serving in the military to help protect all the citizens of our country, and as one of the largest financial industries in the country, the mortgage industry has long been giving back to veterans for their service. Not only is the VA loan program beneficial to veterans, it’s beneficial to their entire families.
We’re a premier provider of VA loans at Primary Residential Mortgage, Inc., and we’ve seen firsthand how huge these programs can be for service members and their families. What is it that makes them so desirable?
With a VA loan, mortgage rates will be much lower. These rates are normally calculated by risk to the lender, but VA loans are backed by the government – it’s tough to get much more low-risk than that.
As a result, interest rates on VA loans will usually be anywhere from 0.5 percent to 1 percent lower than similar loan would be for non-qualified people. Over the entire life of a mortgage, many veterans and their families can save upwards of $10,000.
The vast majority of mortgage loans require a monthly private insurance payment for people who aren’t able to put at least 20 percent down up front. This is to protect the lender against the possibility of a loan default.
The government doesn’t default on mortgages, however, and since they’re responsible for VA loans, there’s no such insurance payment. This helps veterans save money and build equity more quickly.
Most lenders, including Primary Residential Mortgage, Inc., will offer loans with zero down payment to veterans who qualify. Standards for qualification are generally very lenient, and very few veterans fail to qualify unless they have additional funds on hand.
Because of the danger they face to help keep us safe, the least a veteran deserves is the right to pass on their benefits to a surviving spouse if they fall in the line of duty (or later in life from resulting complications). There are many cases where a surviving spouse will be eligible to receive all the same benefits, often a huge necessity in the wake of a recent passing.
To learn more about VA loans or any other mortgage questions, speak with one of our friendly, expert brokers today.