VA loans are an incredibly powerful mortgage option for veterans and current military.
The unique benefits of VA loans are one of the reasons they are among the most popular mortgage products on the market today.
Throughout the years, these government-backed mortgages have helped millions of veterans and military families achieve their dream of homeownership. Let’s look at some of the benefits that make a VA loan stand out from the rest of the pack.
VA Loan Benefits You Should Know
- Government Guarantee. The government backs VA loans, which means they are insured against default. As long as the veteran or service member was in good standing when they entered the military, the government will back the loan in case of default. Why is this important? Because it provides a comfort level for lenders that is not present with other loans. Not only is a VA loan a good option for veterans, but it is also a good option for lenders.
- 100% Financing Options. One of the primary benefits of a VA loan is the financing options. VA loans can be used to purchase a home with a zero down payment and no monthly mortgage insurance. Another benefit of the financing options is the fact that the veteran can purchase additional properties with a VA loan. The most important factor here is whether or not the purchase is a primary residence. The VA allows service members to purchase no more than two homes with a VA loan.
- No Money Down Options. As mentioned above, VA loans allow veterans to purchase a home with no money down. While the purchase price of a veteran’s home must fall within the maximum limits set by the VA, the veteran can use their income and the VA loan to cover the additional costs. Many lenders will allow veterans to cover the closing costs and other additional expenses; however, they cannot use those funds to make the down payment.
- Easy Application Process. The VA loan application process is not only easy to complete, but it is also quick. The majority of veterans seeking a VA loan will be able to complete the application process entirely online. The biggest benefit of the online application system is that service members can finish the application process from anywhere there is an internet connection. This allows the veteran to complete the process entirely on their own time, which allows them to visit their lender or funding agent at their convenience. Another benefit of the online application process is that the veteran will receive their results in as little as 24 hours.
- Forgiving DTI Ratios. DTI stands for debt-to-income ratios. This ratio is used in determining whether or not someone can qualify for a certain loan. Many conventional loans will require a certain debt-to-income ratio; however, VA loans are forgiving and will calculate their ratios in a different way than other loans. VA loans will not consider the second income of a service member when determining the DTI ratio. This is beneficial to service members because they are able to count their spouse’s income without it directly affecting their DTI ratio.
Your VA Loan Experts At MidAmerica Bancorp
The VA loan is one of the most beneficial mortgage products on the market. Thanks to the great financing options, low down payment requirements, and forgiving DTI ratios, veterans can use their VA loans. Whether you are a veteran, active military, or a military spouse, you can use your VA loan to purchase your next home.
If you’re planning on taking out a loan for your next house, you need to find a mortgage broker you can truly rely on. MidAmerica Bancorp, Inc. gives you all the options for you and makes the mortgage application process hassle-free. You won’t find any other broker that offers some of the best rates in the industry. Contact MidAmerica Bancorp, Inc. today at (708) 237-4050 to start your application.