The VA or Veteran Affairs home loan program offers some of the most flexible and attractive terms available today. However, they’re solely for active military personnel, veterans, and the families of these brave souls. Possibly the two most beneficial advantages these loans offer include their affordability and the lack of PMI or private mortgage insurance requirement.
More specifically in Eagan, veteran affairs loans offer the following significant benefits:
- Interest rates are competitive and negotiable.
- Down payment isn’t required, unless your lender requires it, or if your home’s purchase price is substantially higher than the reasonable property value.
- Closing cost fees are considerably limited according to the rules by the Veteran Affairs.
- The seller may also pay for your closing costs.
- You can fund the finance fee, as well as reduce it if you can put it a down payment of 5%. If you’re a veteran under VA compensation, you can also be exempted from this fee.
- An honest-to-goodness assumable mortgage.
- No requirement for PMI or private mortgage insurance.
- You can choose to pay off your mortgage in advance without to worry about being penalized.
- You are guaranteed assistance in the event that you default on your mortgage because of temporary and unexpected financial issues.
- You get a builder warranty and the assistance of the VA to get your builder’s complete cooperation if the VA inspected your home during construction.
As mentioned above, only military personnel in active service, veterans, and military families can take advantage of VA loans and to get one, they will have to make sure that they satisfy all the eligibility rules. Once you’re sure you’re qualified and that you’ve obtained the VA Certificate of Eligibility, you can then look for a lender that offers VA loans in your specific area. Next, all that’s left to do is apply for a VA loan with your chosen lender, get approved, and enjoy your new home.