Did you know there are over 21 million veterans and nearly 1.35 million active-duty military who could be eligible to purchase a home with a VA loan? However, many do not understand how it works which prevents them from trying to obtain homeownership. Here are a few facts to help:
1. No down payment or mortgage insurance
One of the biggest advantages! You don’t need a down payment. Most mortgage programs require at least 3.5 percent to five percent down. A huge savings for our veterans!
With a VA loan, you also avoid steep mortgage insurance fees. At 5 percent down, private mortgage insurance (PMI) costs can be $150 per month or more on a $250,000 home, depending on the buyer’s credit score. This buyer could afford a home worth $30,000 more with the same monthly payment - simply by eliminating PMI. Using a VA loan saves you money upfront and increases your buying power.
2. Use your benefit more than once
You have a total entitlement of $484,350 in El...