VA Loan Mortgage Loan Miami
VA Loan Mortgage. Tracking down the home loan that will best suit your needs can be a tricky proposition in EE.UU but in the area of Miami not. There are more options available today than ever; variety is great, but narrowing down the list of potential options can be daunting. Like most people, you probably want to secure a mortgage that will easily fit within your budget, but that will also allow you to move into the home that is right for you and your family. Virtually everyone has a vast array of home loan options to choose from, but if you’re a veteran or if you are an active member of the United States military, you have one extra option at your disposal: a VA home loan.
If you have the option of a VA home loan, you should seriously consider taking it.
VA loans come with many great perks and benefits that other kinds of mortgages simply do not. For one thing, lenders who offer VA home loans cannot require private mortgage insurance or PMI. For another, interest rates for VA loans are extremely competitive when compared with many other mortgage products. Finally, relaxed qualification standards make VA loans accessible to many people who otherwise wouldn’t qualify for a mortgage – or who would have to pay exorbitant rates to get one.
Although you will more than likely decide that a VA loan mortgage is right for you, it is still imperative to sit down and weigh all of the pros and cons of this kind of mortgage. Educating yourself about the various aspects of VA home loans will help you make the best decision for you and your family.
A Brief History of VA Loans
US Department of Veterans Affairs Seal. The G.I. Bill of 1944 is where the VA Loan Guaranty Program originated. This sweeping bill made several provisions for returning veterans of World War II. Its ultimate goal was to thank those individuals for their service to their country and to help them get on with their lives. Considering that their lives were put on hold in many ways due to their military service, the bill was designed to give them a helping hand. The VA Loan Mortgage Guaranty Program aimed to make housing affordable for returning GIs.
Through the VA Loan Mortgage Guaranty Program, veterans, and active military personnel were able to qualify for home loans through qualified lenders. The U.S. government backed up a certain portion of those loans, guaranteeing them and, essentially, vouching for those who took them out. One of the most important aspects of how the government achieved that was by ensuring the property that was being financed on the GIs’ behalves. For that reason, there was no need for those who qualified for VA loans to take out private mortgage insurance; a benefit that would add up to significant savings down the line.
VA Home Loans: Top Benefits and Advantages
The G.I. Bill was enormously popular and successful; the many perks and benefits that it afforded to United States military personnel and veterans were the impetus for that popularity. Few parts of the bill were met with more enthusiasm
than the VA home loan provisions. Since being introduced, VA home loans have been quite popular and more en Miami have helped thousands upon thousands of military personnel to get into affordable homes. If you are qualified to take out a VA home loan, you should seriously consider doing so; some of the main reasons include:
No Down Payment Needed
One of the most attractive things about securing a VA home loan is that you can finance 100% of the purchase price of a home. In other words, down payments are not required. Therefore, you do not need to have a lot of money saved up for a down payment and can use any money that you have saved to make whatever purchases you need. Nine out of ten people who secure a VA loan mortgage take advantage of this benefit and put no money down when buying a home. Without question, this is a major selling point for many people.
No Private Mortgage Insurance Required
The vast majority of people who take out mortgages have to pay anywhere from $100 to $200 extra per month, on average, in order to pay for mortgage insurance. Mortgage insurance is required for most people who have less than 20% equity in their homes, in order to protect their lenders in the case of default. Since the U.S. government guarantees a portion of every VA loan, private mortgage insurance – or PMI – is not required. This shaves a significant amount of money from the average monthly payment of those who participate in the VA home loan program.
Relaxed Qualification Standards
Incredibly, the United States government does not have a minimum income requirement for people to qualify for VA loans. In addition, there is no minimum credit score required either. Debt-to-income ratio limits are also very relaxed for VA home loans when compared with most traditional mortgages, which imposes a 36% limit. VA home loans impose a 41% debt-to-income ratio limit. If your credit is quite poor – even if you’ve recently had a bankruptcy – you can still qualify for a VA mortgage. These relaxed standards have helped thousands of people get into homes.
Since your credit score isn’t taken into consideration when you apply for a VA loan; you are always going to pay a lower interest rate. For traditional mortgages, a person’s credit score can have a dramatic; and very negative impact on the rate that they end up paying. For every 20 points that their credit score dips below 720, traditional borrowers pay a higher rate. Regardless of what your credit score may be, you’ll enjoy the same interest rates that someone with impeccable credit would enjoy when you qualify for a VA home loan.
No Prepayment Penalties
Many times, lenders who pay off traditional mortgages ahead of schedule are subject to a fee. These kinds of mortgages are known as prepayment penalty mortgages or PPMs. A great advantage of a VA home loan is that there is no penalties or fees for paying off the loan ahead of time. For this reason, you can easily pay a bit extra toward the principal of your VA loan mortgage each month; without the threat of incurring a huge penalty when you do pay it all off. It’s just one more way that VA loans save you money.
How Do the Interest Rates for VA Home Loans Compare with Those for Other Mortgage Products in Miami?
As noted previously, the interest rates for VA home loans are generally quite a bit lower than for traditional mortgage products of Miami. In fact, this is one of their major selling points; and is the main reason why so many people are sold on them. For people with poor credit, especially; the low-interest rates offered through the VA home loan program are very enticing. After all, those with low credit scores generally enjoy the same competitive interest rates that people with top-notch credit scores enjoy. Whether your credit score is 750 or 600, you’re going to pay a lot less interest with a VA loan.
If you want to know how much a VA home loan will cost in terms of interest; you should just look at what standard, fixed-rate, 30-year mortgages are going for in terms of interest; and shave a little bit off of the total. Since rates fluctuate, there is no point in documenting how much you are going to pay in interest for a VA home loan. Suffice it to say that it is generally a great deal less than you would pay for many other popular mortgage products in Miami or another state.
When Is The Best Time To Get A VA Home Loan in Miami?
When shopping around for a mortgage, many people wonder if there is a “good time” to apply in Miami. For some mortgage products, there is no doubt that key market conditions affect how much they’re going to pay. However, there’s not an only advice for when you should apply for a VA home loan in Miami. The things that affect the interest rates to the typical VA home loan vary; and they are complex so there is no hard and fast rule to refer to.
If you are considering a VA home loan, contact us in Miami and ask us what the current rate is. Try to get a feel for whether rates have recently crept up or gone down, and act accordingly. Either way, you’re going to be paying a lot less than those who don’t qualify for VA loans. Also, without the worry of private mortgage insurance and without having to make a down payment; you’re going to be ahead of the game financially. In fact, the relaxed conditions for VA home loans make anytime a good time to get one in Miami or around USA.