What’s not to love about the VA loan? Well if you ask David, there’s nothing about the loan that’s not magnificent. Check out what he has to say are the top benefits of using a VA loan to purchase a home.
The first amazing VA Loan benefit is that you don’t need a down payment. The only exception is if you go over your entitlement. Also, you don’t have to purchase private mortgage insurance (PMI). Other buyers are required to get PMI when they don’t put 20% down, but with the VA Loan, you won’t have to. Low-interest rates are another benefit of the VA Loan, though how low will depend on your personal financial situation and other variables.
The VA Loan allows for many great refinancing opportunities, including 100% refinancing and the Interest Rate Reduction Refinance Loan (IRRRL). There’s no prepayment penalty for paying the loan off faster than planned. Closing costs are lower with the VA loan as well, usually between 1-3%.
In the unfortunate event of foreclosure, the VA Loan provides excellent foreclosure assistance. If, for some reason, you can’t or don’t want the property anymore, someone else can assume your loan. As of 2020, there’s no limit to how much you can borrow on your first use of the VA Loan. You can also use the VA Loan more than once, two veterans use their loans together, and you can use the loan for house hacking.
Find Out More about David and His Mission
David Pere is an active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.
Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No B.S. Guide to Military Life here.
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