Why We Encourage VA Loans (And Why Other Lenders Discourage Them)
Some lenders discourage the VA loan program. They often claim the fees are too high, there is extra paperwork, or that a VA loan can take over a month to close. The truth is that these lenders simply don’t fully understand the program and its loan processing requirements. In reality, a VA loan will virtually always be the best loan option for any eligible veteran. At RMN, we are experts in VA lending. We underwrite all VA loans in-house and can close them in just two weeks like any other loan.
Let’s dispel the myths that other lenders have spread about the VA loan program. Below is a list of the great benefits of obtaining a VA loan:
- The VA program provides the veteran with a fixed interest rate for the entire life of the loan.
- Zero down payment required: the VA program allows the veteran to finance up to 100% of the purchase price.
- Typically, the interest rate on a VA loan is at least half a percentage point better than the rate available with Conventional Financing.
- Some lenders may claim that a VA loan has “mortgage insurance”. In reality, a VA loan has no monthly MI. In fact, if a veteran has more than 10% service connected disability, then they are exempt from the upfront loan funding fee.
- There are absolutely no extra closing costs associated with a VA loan. In fact, the VA actually prohibits certain fees, such as a pest inspection, from being charged to the veteran.
VA loans offer a fixed rate that’s typically half a point better than Conventional along with 100% financing and no monthly MI. No extra fees or time are added to the closing process. This is why RMN is such a passionate supporter 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.