Home | Finance | 12 Things One May Not Know About VA Loans

12 things one may not know about VA loans

12 things one may not know about VA loans

The military, navy, and air force are indispensable in protecting the nation against external threats and ensuring citizens’ safety. VA loans are a way to help army veterans get their home loans approved at low interest rates. Applicable to veterans and service members and their spouses, VA loans are useful ways to support Army personnel and their families. Certain aspects of VA loans, which many may not know of, increase their benefits for veterans.

One doesn’t have to make a down payment
Unlike other house loans, which require a down payment of a certain amount at the outset, VA loans do not require down payments. As a result, veterans do not have to suffer a financial crunch and can easily manage their current financial responsibilities while investing in real estate.

The closing costs are minimal
VA loans involve closing costs like other home loans. However, the closing costs for VA loans are significantly lower than those for regular home loans. These costs generally cover the expenses related to mortgage design, underwriting, taxes, insurance, and real estate commissions. Since VA loans’ closing costs are minimal, the borrower’s average expenditure is significantly reduced.

There is no PMI required
Private mortgage insurance, or PMI, is a type of insurance borrowers may have to buy if they make a down payment of less than 20% of the property’s total value. While PMI is a prerequisite for regular home loans, it is not required for borrowers eligible for a VA loan, another significant benefit of applying for this type of home loan.

The Government ensures VA loans
VA loans are a type of mortgage that does not require private mortgage insurance (PMI). However, they are still beneficial for lenders and borrowers because the government backs them. If the borrower defaults on their loan, the government guarantees a portion of the loan to the lender through a private mortgage lender. This government insurance makes VA loans a more secure option for lenders and a more affordable option for borrowers.

There is a mandatory funding fee involved
A funding fee is mandatory for all VA loan borrowers. This amount compensates for any losses incurred because of borrowers’ defaults. Although it is part of the closing costs, one may pay for it in addition to one’s loan expense.

Even those with relatively low credit scores may be eligible
Those with a low credit score may find it difficult to be eligible for a home loan, but VA loans are more flexible regarding credit scores. Those with a low credit score may also be eligible for a VA loan if they are Army personnel or spouses of veterans or service members. Also, interest rates for those with an average credit score may be the same as those with high scores. As a result, this scheme is highly beneficial for those with a bad credit report.

It’s possible to apply for a new VA loan after paying off the previous one
Suppose an army personnel needs to move to another place on duty but has already taken a VA loan for the existing property. In that case, they can secure another VA loan for a second property with a minimal or zero down payment if they have paid off the first one. This makes it highly convenient for army veterans and service members, who typically need to move frequently to new places owing to their profession.

Another eligible individual may assume a VA loan
Another significant advantage of VA loans is that another eligible person may take them over if the VA and lender approve of this handing over. However, the other person taking over the loan should also be eligible for a VA loan, meaning they should also be an army veteran, service member, or spouse of an army personnel.

There is no penalty for prepayment
Regarding VA loans, paying an amount higher than one’s monthly mortgage does not incur a penalty. In other words, there is no prepayment penalty for VA loans.

There are specific eligibility criteria
While the broad eligibility criterion for VA loans is that one should be an army veteran or service member or the spouse of an army personnel, there are specific criteria for eligibility that an applicant should meet. For example, the duration for which the individual has served in the army and the service period plays a key role in eligibility. For instance, an army officer who had served for a considerable duration in the Vietnam War is highly likely to have their VA loan approved. However, once a person earns eligibility for a VA loan, it is permanent, lasting even after decades.

The VA loan rates are relatively low
Compared to other home loans, VA home rates are low, typically 0.25% lower than regular home loan rates. Also, since there is government and VA backing, VA loans are safe for borrowers and lenders.

VA loans have low foreclosure rates
It has been observed that VA loans have the lowest foreclosure rates among home loans. This implies that army veterans, service members, and their spouses are serious about their home loan repayment, which makes the situation highly favorable for lenders.

Read Also

Know more about exciting & latest articles right here

Foods to Avoid to Manage Eosinophilic Esophagitis

Foods to Avoid to Manage Eosinophilic Esophagitis

Eosinophilic Esophagitis, or EoE, is a chronic digestive disease of the esophagus caused by an allergic condition. It is characterized by chest pain, heartburn, and solid food dysphagia. If this disorder is left untreated, it can cause esophageal remodeling and stricture formation. This disorder is also marked by eosinophilic inflammation and impacts the quality of life of the affected person. You can check out various reliable health websites to get information on eosinophilic esophagitis. A patient with EoE must be very careful with his health and meal plans, as research suggests that EoE is linked to food allergies. Therefore, the six most common food items that are responsible for such allergies include: Dairy Cow milk is said to be one of the most common reasons for EoE. Milk protein can trigger too many eosinophils. You should avoid food items made up of milk, buttermilk, lactose, and other related dairy products. You can replace dairy products with coconut hemp, dairy-free yogurts, cashew ice cream, etc. Soy Soy-based food items include tofu, soy butter, soymilk, and miso. Soy cheese, soy nuts, soy milk, etc., should be avoided and can be substituted with refined soybean oil or coconut aminos. Wheat You might think wheat is only found in bread, cereal, or baked goods.
Read More
5 Common Digestive Issues and Their Symptoms

5 Common Digestive Issues and Their Symptoms

One of the most vital systems in our body is the digestive system. It is responsible for the digestion of food and the distribution of nutrients throughout the body to meet the bodily requirements for energy, development, and cell repair. Issues in the digestive can interfere with the body’s ability to get energy from food. While some gastrointestinal issues can go away with healthy eating habits, other concerns may require treatment.  Irritable bowel syndrome (IBS) IBS is a functional bowel disorder. This means the cluster of varied symptoms categorized as IBS is brought on by changes in the normal functioning of the digestive system. The primary sign is abdominal pain, which can develop before or after a bowel movement, and is a reliable indicator of IBS. Additionally, one may experience both constipation and diarrhea. The form of IBS can be determined depending on whether a person has diarrhea or constipation more frequently or both equally. Other IBS signs and symptoms are incomplete bowel motions, white mucus in the stool, and bloating. Nutrition is important for managing the symptoms of IBS, which includes eating low-fat, high-fiber meals and avoiding common trigger foods when the cause of the condition is unknown. Food poisoning or gastrointestinal infection are common causes.
Read More
8 Common Cleaning Mistakes to Avoid

8 Common Cleaning Mistakes to Avoid

Most of us make it a goal to keep our house clean and tidy. Cleaning the house may look like a straightforward task, but there are certain aspects that are generally overlooked. Cleaning is a time consuming and tedious activity. And most of us make common cleaning mistakes that do not provide us with the results we expect. So here is a list of cleaning mistakes to avoid for better results and a sparkling clean home. Mixing cleaning chemicals You may think mixing two or more cleaning products will increase the cleaning power. However, this can be very dangerous as it might release toxic fumes. For example, household cleaners like Clorox Pinesol should never be mixed with bleach as they can react together to produce hazardous chlorine gas or even chloroform. Similarly, Pinesol disinfectant should not be mixed with room spray sanitizer as the chemicals could react together to unleash a toxic cloud of gases that can trigger respiratory problems and even cause skin burns. Instead of mixing chemicals, use a single cleaning agent or solution and stick to a reliable brand. Alternatively, you can also enlist the help of a cleaning company, like Servpro Services, which offers a range of affordable home cleaning services. Using feather dusters A feather duster may seem very useful, but all it does is spread the dust from one surface to another.
Read More
11 Potential Warning Signs of Excess Sugar Intake

11 Potential Warning Signs of Excess Sugar Intake

Processed foods like cakes, cookies, candies, and breakfast cereals contain added sugar, and most people find them delicious and irresistible. However, they have little nutritional value. Eating too many sweets can increase the risk of several health issues. For instance, it can lead to blood sugar spikes and heart disease. When a person eats too much sugar regularly, the body begins to give signs that it is time to cut back on sweet foods. High blood pressure Besides monitoring salt intake, people suffering from high blood pressure should watch their sugar intake because eating too much sugar is also linked to high blood pressure. According to a study, foods high in sugar can reduce nitric oxide in the blood vessels, which can, in turn, impact blood flow and lead to high blood pressure. Mood swings or irritability Feeling moody, irritable, or depressed on and off is a common sign of high sugar intake. Mood swings occur as foods high in sugar affect the neurotransmitters in the brain that regulate mood. Sugary foods also negatively impact gut function, another factor linked to a person’s mood. Low energy or tiredness Binging on sugary snacks wreaks havoc on one’s blood sugar levels. It first causes blood glucose to rise, providing a boost of energy.
Read More