Have you been discouraged from pursuing the VA loan program? Unfortunately, many lenders don’t encourage the VA loan program for eligible veterans and active-duty military, even though it is almost always the best loan option. Discover why lenders discourage VA loans, the benefits of the VA loan program, and why we always encourage them!
Why Other Lenders Discourage VA Loans
If the VA loan program is the best option for eligible veterans and active-duty military, why do lenders discourage people from pursuing it? These lenders often will tell you that the fees are higher, there’s more paperwork, or it will take too much time to close.
The reason lenders discourage the VA loan program is that they aren’t well-versed in processing VA loans. This means they don’t fully understand the program or its processing requirements.
Here at RMN, we specialize in VA loans, as well as Rural Development and FHA loans. We know the VA loan program inside and out! Additionally, we underwrite our VA loans in-house and can close them in two weeks.
Benefits of the VA Loan Program
There are many advantages to choosing the VA loan program, including its flexibility and government backing. Below is a list of the many benefits of a VA loan:
Fixed Interest Rate: VA loans provide veterans with a fixed interest rate for the entire life of the loan.
Zero Down Payment: The VA program allows the veteran to finance up to 100% of the purchase price.
Lower Interest Rate: Typically, the interest rate on a VA loan is at least half a percentage point better than conventional loans.
No Monthly MI: VA loans have no monthly mortgage insurance. In fact, if a veteran has 10% or greater service connected disability, then they are exempt from the upfront loan funding fee.
No Extra Closing Costs: There are absolutely no extra closing costs associated with a VA loan. In fact, the VA actually prohibits certain fees from being charged to the veteran.
- MHOA $5,000 Grant: There is a Military Home Ownership Assistance Grant for Veterans that have at least 90 days of Active Duty Service post-9/11. This can be used towards down payment and/or closing costs.
When it comes to financing your home, the VA loan program really is the best option for eligible veterans! This is why we’re such passionate supporters of the VA loan program.
To get started with your VA Loan, contact Residential Mortgage Network today! We specialize in VA lending and are committed to providing the best loan options for you.