The Pros And Cons Of VA Loans

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Va Loans for Vets provides and assists all veterans and active duty military with ALL of their VA Home Loan Financing Needs. Be a proud homeowner today. For more details call us at 480-351-5904 or visit our site http://www.valoansforvets.com/ VA Loans for Vets 7702 E. Doubletree Ranch Road, Suite 220 Scottsdale, AZ 85258 Phone: (480) 351-5904 Email: jimmyv@fcbmtg.com

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The Pros and Cons of VA Loans

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The Veteran’s Administration guaranteed home loan program has allowed millions of veterans and active duty service members an affordable way to own their own homes.

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The program does not provide home loans for veterans. Instead, it guarantees loans given by private lenders.

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A look at the pros and cons of the program can help homebuyers determine if a VA guaranteed loan is right for them.

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Pros of VA Home Loans

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The VA home loan program is popular because it offers homebuyers a number of advantages:

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· Little or no down payment is required – Homebuyers can purchase a home sooner because they do not have to save for the large down payment required by lenders offering conventional loans.

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· Competitive interest rates - Because the risk for repayment of the loan is covered by the federal government, lenders can offer lower interest rates.

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· The purchase price of the home is assured – A VA appraisal ensures that the home is worth the value of the loan.

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· Closing costs are limited – The VA program will pay customary closing cost items, but not additional costs.

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· No prepayment penalty – Homeowners who then sell their property do not have to pay a penalty for paying off the loan earlier than its term.

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· VA loans are assumable – The homeowners can offer the favorable mortgage terms to a subsequent buyer.

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· Forbearance for financial difficulties – If the homeowner has a financial setback and cannot make payments, special terms can be negotiated for them.

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· Warranty for VA approved construction – The VA will assist in enforcing the builder’s warranty for justifiable construction complaints.

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Cons of VA Home Loans

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A home loan through the VA program also has a number of disadvantages that homebuyers should take into account:

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· VA home loans are for the purchase of primary residences - These loans cannot be used for purchasing investment property or second homes.

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· You must pay a VA loan funding fee – The VA imposes a fee on these loans to fund the program. The fee can be rolled into the loan amount.

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Veterans who have service-related disabilities are exempt from paying this fee. The funding fee increases each time you use the VA home loan funding program.

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· Sellers may not agree to a sale with VA loan – A number of misconceptions regarding VA home loans have contributed to seller reluctance to enter the application process.

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However, sellers may be required to pay some of the closing costs, and this expense may put off some sellers.

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· Loan limits and overlays may apply – The VA home loan program does not impose limits on home loans. However, private lenders may have additional requirements, called overlays, in regard to loan amounts.

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These requirements help to ensure that the lender maintains its favorable record with the VA.

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· VA loans do not guarantee construction defects – Approval of the loan neither guarantees that the property is free of defects, nor can it compel the builder to correct any problems with construction.

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However, it can suspend the builder from the VA program.

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· The VA program does not provide for legal services, if necessary – Any legal action against the builder or previous owner is the responsibility of the buyer.

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Our VA Loan Specialist helps veterans obtain the loans they are entitled to.

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He served in the United States Marine Corps, and now devotes himself to the Veteran home buyer in the Phoenix area, fulfilling a passion of his while at the same time helping others achieve home ownership.

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Be a proud homeowner today. For more details call 480-351-5904

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V isit the site at: www.valoansforvets.com

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VA Loans for Vets 7702 E. Doubletree Ranch Road, Suite 220 Scottsdale, AZ 85258 Phone: (480) 351-5904 Email: jimmyv@fcbmtg.com

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