The mission of the Veterans Affairs is to serve the nation’s military personnel.
The VA’s loan program extends to eligible servicemembers and Veterans a direct pathway to homeownership that’s packed with features that make it easier to get into a home.
If you serve this nation and you’re ready to enter the real estate market, here are five things to know to make the most of a VA loan in today’s competitive market.
Many VA loan borrowers enjoyed the freedom of not having to pay for a down payment.
But, there was a limit on the loan amount.
Beginning in 2020, however, the VA loan no longer has caps, which supplies borrowers with bigger buying power.
The Blue Water Navy Vietnam Veterans Act removed loan limit maximums on how much the VA would back. Today, homebuyers have the flexibility of entering higher price points for the home of their dreams.
Funding fee adjustment
Depending on whether you’re a first-time homebuyer or not, you’ll notice that the fee has adjusted.
For individuals applying for a mortgage to purchase their second home, the fee is now 3.6 instead of 3.3. For first-time home buyers, the increase is modest, up by just .15 percent.
No mortgage insurance
Another great financial perk that you’ll enjoy as a VA loan holder is that you’ll pay no private mortgage insurance.
In many cases, homeowners must owe less than 80 percent of their home’s value in order to avoid paying mortgage insurance.
Thanks to being fully backed by Veterans Affairs, mortgage insurance is not necessary with a VA loan.
Close at market speed
A misconception many hold is that a VA loan takes too long to close, a disadvantage for a market that can be fast-moving.
In fact, a VA loan may perform (and close) nearly as well as an FHA loan.
More people using VA loans
If you think today’s market is squeezing you out, it’s important to realize that the number of VA loans is on the rise. Millennials leaving military service make up a good chunk of VA borrowers. Like many around their age, they are entering the market for the first time.
And they have plenty of reason to be optimistic with the backing of a VA loan – which will provide them a favorable rate, lenient borrowing terms and flexibility to conquer the market here in Oahu.
If you’re ready to settle down and make Oahu your home, please reach out to us today to learn more about the opportunities afforded to you through a VA loan.