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VA Loan Key Facts
Veterans are the backbone of this great nation, and while we can never fully repay them for their service, dedication, and sacrifice, there are certain benefits that are available to Veterans exclusively. One of these is a VA home loan.
We’ll explore what this benefit means for Veterans, how to get the most out of this offer, how VA Home Purchase Loans work, frequently asked questions, and how to apply. If you’re a Veteran, read on to have all your VA home loan questions answered.
What exactly is a VA home loan?
A VA home loan is a mortgage loan where part of the loan is guaranteed by the U.S. Department of Veterans Affairs (VA). It's designed to offer long-term financing to eligible Veterans or their surviving spouses.
A VA home loan helps Veterans purchase a home by offering competitive interest rates, often without a down payment or private mortgage insurance.
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Here are the key features of a VA home loan:
Often no down payment required:
One of the most significant benefits of VA loans is that in many if not most cases, no down payment is needed, making home ownership more accessible for Veterans
No private mortgage insurance (PMI):
Unlike conventional and FHA loans, a VA loan doesn't require borrowers to purchase private mortgage insurance (PMI) if they do not make a down payment – saving borrowers what is often hundreds of dollars on their monthly payments
Competitive interest rates:
VA home loans often have lower interest rates compared to conventional loans, because the VA guarantees a portion of the loan – reducing the risk for VA home loan lenders
No prepayment penalties:
In many cases, borrowers can pay off their VA home loan early without facing any financial penalties
Why is this so critical for Veterans?
The key takeaway for Veterans is that an incredible benefit is waiting for you to use – benefits not available to the general population.
For example, with a NewDay Zero Down VA Home Purchase Loan, Veterans can:
Avoid Down Payments
At NewDay USA, your service is your down payment
Forget PMI
Generally there are no Private Mortgage Insurance requirements
Get Attractive Rates
Typically these loans offer competitive interest rates
Save on Origination Costs
Veterans enjoy limits on origination costs
Avoid Down Payments
At NewDay USA, your service is your down payment
Forget PMI
Generally there are no Private Mortgage Insurance requirements
Get Attractive Rates
Typically these loans offer competitive interest rates
Save on Origination Costs
Veterans enjoy limits on origination costs
Your VA Home Loan Process Starts Here!
NEWDAY’S APPROACH IS SIMPLE:
You’ve served your country. Now allow NewDay to serve you.
The next question Veterans might be asking themselves is how the process works, what VA home loan information is available, and how to get started using this benefit. We’ll break this down so you understand
the full process and can get started on purchasing your dream home.
How does a NewDay VA home loan work?
There are 4 easy steps towards purchasing your dream home with
exclusive Veteran benefits:
Receive
your Cash Buyer Certificate: this certifies that your NewDay USA loan has been qualified in advance, so you can shop with the confidence of a cash buyer
Connect
with a Veteran-focused real estate agent: NewDay USA can connect you with a Real Estate Agent who understands the VA home purchase process
Move
into your dream home: Once your offer is accepted, NewDay USA handles all the paperwork for you, so you can enjoy your new home experience
Receive
your Cash Buyer Certificate: this certifies that your NewDay USA loan has been qualified in advance, so you can shop with the confidence of a cash buyer
Connect
with a Veteran-focused real estate agent: NewDay USA can connect you with a Real Estate Agent who understands the VA home purchase process
Move
into your dream home: Once your offer is accepted, NewDay USA handles all the paperwork for you, so you can enjoy your new home experience
VA home loan requirements
Those eligible for a VA home purchase loan include:
Active duty service member
Veteran with honorable discharge
Surviving spouse of an eligible deceased Veteran
Reservist/National Guard with honorable discharge and sufficient time served
Spouse of a MIA/POW service member
VA Home Loan Rates
It’s important to emphasize the benefit of a VA Home Loan in terms of the more attractive interest rates and other terms often available, compared to conventional loans. As a reminder, this is the result of the Department of Veterans Affairs (VA) guaranteeing the loan, enabling the offer of more competitive rates and generally better terms. So by choosing a VA Home Loan, you could be getting better rates, zero down payment, no private mortgage insurance payments (PMI) and no prepayment penalties. Make sure to take advantage of these great benefits!
VA Home Loan FAQs
In terms of buying a house with a VA loan, the VA home loan is designed for primary residences only. This means you cannot use a VA loan to buy a second home or an investment property. However, if you have remaining entitlement, you might be able to use a VA loan to purchase another home if you plan to make it your primary residence, even if you already have a VA loan on your current home.
You cannot use a VA home loan to purchase land by itself. The VA loan is intended for properties that are move-in ready, including modular homes, condos, and single-family homes. That said, you can use a VA loan to buy a property that includes land with a home on it, as long as the primary purpose of the loan is to purchase the home.
While not required, we generally recommend involving a Real Estate Agent to give you the peace of mind that the Agent is working for you so the contract will be constructed in your best interest. We can even help you find a veteran focused agent in your area with access to a realtor network
FHA loans are insured by the Federal Housing Administration and are designed for low-to-moderate-income borrowers; they require a lower minimum down payment and lower credit scores than many conventional loans. However, the absence of PMI and no down payment requirement make VA home loans particularly appealing, as they can significantly lower the upfront and monthly costs for Veterans and military families.
Yes, you can use a VA home loan to buy a duplex, or even a property with up to four units, as long as you occupy one of the units as your primary residence. This is a great way for veterans to become homeowners while also investing in real estate that can generate rental income.
The Cash Buyer Certificate is unique to NewDay USA and gives you an advantage because our Underwriting Department does a full credit and income review before you go shopping. You will know you are qualified to buy your dream home before you make an offer.
Call one of our VA loan Specialists now and we’ll see how low we can go for you.
The VA home loan program is known for its flexibility in terms of credit requirements, making it easier for Veterans to access this benefit compared to traditional mortgage options. And while lenders do have credit criteria, they may be more flexible when it comes to Veterans applying for VA loans.
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Veterans: don’t miss out on this incredible opportunity
The VA home loan is a really great deal for Veterans. Imagine buying a home without needing a down payment, without having to pay extra each month for mortgage insurance, and getting competitive rates even if your credit score isn't perfect.
This is a unique chance for Veterans to receive their slice of the American dream that they're entitled to, and have sacrificed so much for.
If you're a Veteran with a dream of purchasing a home of your own, you definitely shouldn't pass up this opportunity. Contact a NewDay USA representative about the NewDay Zero Down VA Home Purchase Loan. Because no one takes care of Veterans like NewDay USA.