Putting less than 20% down: VA loans
A VA home loan is a good alternative for qualified veterans who don’t want to put 20% down. Historically, the so-called “VA direct home loan program” was designed to offer long-term financing to American veterans and their surviving spouses, provided the spouses do not re-marry. Not all homes are available for a VA loan, though. That’s because the basic intention was to supply home financing in areas where limited funding is available. That usually translates to rural areas or small, isolated towns and cities.
But, here’s what makes a VA loan really attractive: It is one of the only loan programs that still allows the borrower to finance 100% of the home’s value and purchase with zero down. This program also offers two benefits that will substantially lower your monthly payment… PMI, or private mortgage insurance, is not required on a VA loan. And, interest rates can be lower than conventional loans. So, if you’re a veteran in an area you think qualifies, it’s a great way to go.
Ask your REALTOR® for referrals to mortgage brokers in your area — That’s one of many services your REALTOR® can provide. You can also get a VA loan from a bank. Many banks—large and small—offer VA loans.
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Great info, guys! It’s good to have a reminder about the alternative forms of financing, especially for the Vets.
Keep up the great work! I’m a listener from the beginning.
Although I knew this, I still found the post quite interesting.
REALLY good post here. This is a fantastic explanation.