VA-Guaranteed Home Loans: A trusted option for Veterans at every stage

The weather is getting warmer, the flowers are in bloom and “for sale” signs are blossoming on hundreds of thousands of homes across the United States. Spring is the traditional start of the homeownership journey for many Americans, but especially for service members and Veterans who are used to spring bringing Permanent Change of Station (PCS) orders that require military members and their families to move to different military installations.  

Veterans may be considering new job opportunities, moving closer to their families or finally retiring and looking for that “forever home.” Whatever the reason, all service members and Veterans should consider purchasing their new homes with a VA-guaranteed home loan, the unique option that makes housing more affordable.  

How does a VA-guaranteed home loan make a house more affordable? VA-guaranteed home loans have specific requirements for lenders to help keep loan costs and down payments low or non-existent, ensure competitive interest rates for military borrowers and eligible surviving spouses, and do not require private mortgage insurance. This helps keep more money in borrowers’ pockets and lowers overall mortgage costs over the life of the loan. 

Veterans with service-connected disabilities who receive VA service-connected disability compensation save even more money, since the VA funding fee—a one-time payment the borrower pays on a VA-guaranteed home loan—is waived. With funding fees as high as 2.15% (first-time use of the benefit) and 3.3% (subsequent uses), this could result in tens of thousands of dollars in savings.  

But for Veterans who are required to pay the funding fee, a new change this year allows you to deduct that funding fee on your taxes, if you are itemizing. Veterans who pay the funding fee have the option to roll the fee into their loan so they do not need to pay it out-of-pocket at closing. 

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Source: VA News
Website: news.va.gov