One of the best benefits available to veterans, active-duty military, and some other eligible people is a VA mortgage loan guaranteed by the Department of Veterans Affairs. Commonly known as VA loans, these mortgages offer great interest rates, flexible guidelines to qualify, and no down payment. VA loans are available to most of the 1.5 million veterans in Florida, as well as current service members. Here are eight things to love about VA mortgage loans:

  1. No down payment. With a VA loan, you can finance up to the full purchase price of a home. If you want to make an optional down payment, you can, but it’s not required. VA loans do require a funding fee, an upfront charge that’s based on your service, the size of the loan, and other factors. But that fee can be financed with the loan so you don’t have to pay it all up front. And not all borrowers have to pay the fee as it can be waived for some borrowers.
  2. Low interest rates. VA loans are guaranteed by the VA Home Loan Guaranty Program. That means the federal government will repay a portion of the loan if you can’t make your monthly payments. The guarantee protects the lenders from the risk of default, and that means they can offer you lower rates of interest.
  3. No mortgage insurance. Mortgage insurance protects the lender in case the borrower defaults on his or her loan, and most borrowers have to pay for it. But since VA loans are guaranteed by the government, no mortgage insurance is required.
  4. Easy qualification. You’ll need an acceptable credit history and enough income to make your payments, as you would with any mortgage loan. However, VA guidelines are more flexible than those for other mortgages, so it can be easier for you to qualify.
  5. Many options. VA loans provide several options from a lot of different lenders. They can be fixed or adjustable, allow you to make repairs or refinance your existing loan, or even make energy-efficient upgrades. VA loans are offered by banks, credit unions, mortgage lenders, and other financial institutions, and each one has different rates and fees. So there are a wide variety of VA loan options from which you can choose.
  6. Low closing costs. The Department of Veterans Affairs establishes limits on the closing costs that lenders can charge to VA borrowers, another money-saving feature.
  7. No prepayment penalty. If you decide to sell your home later, VA loans don’t allow any prepayment penalty. They also don’t allow any restrictions on refinancing your home.
  8. Streamlined refinancing. The VA also offers an Interest Rate Reduction Refinance Loan (IRRRL) that allows you to refinance your VA loan to a lower rate if interest rates drop. You can also refinance from an adjustable rate to a fixed rate. IRRRLs have little paperwork and often require little to no out-of-pocket costs.

If you’re an eligible VA borrower in the Sunshine State, Embrace Home Loans can help you take advantage of your VA loan benefit. We’ll work with you to look at your VA mortgage options and figure out the financing that’s right for you. Contact us today at 407-733-6425, or browse the rest of our website, for more information on our services.