Let Priority Mortgage Be Your VA Loan Mortgage Company
A VA loan is perhaps the most powerful and flexible lending option on the market today. Rather than issue loans, the VA instead pledges to repay about a quarter of every loan it guarantees in the unlikely event the borrower defaults.
That guarantee gives VA-approved lenders greater protection when lending to military borrowers and often leads to highly competitive rates and terms for qualified veterans.
Far and away, the most significant benefit of a VA loan is the borrower’s ability to purchase with no money down. Apart from the government’s USDA’s Rural Development home loan and Fannie Mae’s Home Path, it’s all but impossible to find a lending option today that provides borrowers with 100 percent financing.
VA loans also come with less stringent underwriting standards and requirements than conventional loans. In fact, about 80 percent of VA borrowers could not have qualified for a conventional loan. These loans also come with no private mortgage insurance (PMI), a monthly expense that conventional borrowers are required to pay unless they put down at least 20 percent of the loan amount.
Key Benefits of VA Loans
VA loans come with significant benefits to individuals who have proudly served our beloved country. Some of these advantages include:
- Competitive Interest Rates – Eligible borrowers can obtain lower interest rates that are typically lower than conventional interest rates. The guarantee from the Veterans Affairs encourages VA lenders to offer competitively lower rates.
- No Prepayment Penalties – While people can save a lot of money when they pay off their mortgage early, they need to pay the prepayment penalty in the process. Fortunately, qualified VA borrowers can pay off their VA loans early without fear of paying any prepayment penalty.
- Relaxed Credit Requirements – Veterans do not need an outstanding credit score to secure a VA loan.
- Curbed Closing Costs – The VA limits the costs and fees that eligible veterans pay at closing, translating to lower closing costs. Additionally, qualified VA borrowers can request sellers to pay up to four percent of the purchase cost for things like collections, insurance, and prepaid taxes.
With all these benefits, it’s no wonder that the VA loan program has assisted more than 20 million veteran and military families in the US. If you qualify for a VA loan, take the next step by getting in touch with our loan officers to discuss your specific needs and situation.
VA loans offer a few other bells and whistles:
- Competitive interest rates that are routinely lower than conventional rates
- No prepayment penalties
- Higher allowable debt-to-income ratios than for many other loans
- Streamlined refinancing loans that require no additional underwriting