My First Car Loan

Many people know the main benefits of getting a VA loan to buy a home, which include no down payment and no PMI. However, there are a few lesser-known benefits that you should be aware of if you are considering a VA loan.

Lower Closing Costs 

You'll find that the closing costs related to a VA loan are going to be cheaper than those for a traditional loan from a bank. Every bit counts when it comes to buying a house, and lower closing costs mean less money that is needed up front when you purchase a home. When you combine it with the benefit of not needing a down payment, it makes it possible for you to buy a home when you do not have much in savings.

Foreclosure Assistance

If you do find yourself in a situation where you are unable to pay for your mortgage, the Veterans Affairs administration will provide you with assistance. VA loans are backed by the government, so it is in their best interest to make sure that you can continue making payments towards the loan and not foreclose on it. This includes giving you extra time to pay missed payments, coming up with a repayment plan, or even modifying the loan by adding costs back into your mortgage payment and averaging them out over the length of the loan.

Assumable Loans

One unique thing about a VA loan is that it is assumable with approval from the VA administration. This means that if you sell your home, the buyer is capable of completely taking over your VA loan and all of the benefits that come with it. The buyer doesn't need to be eligible for a VA loan either, which means anybody is capable of assuming the loan. This can make purchasing your home appealing if you need to get out from under your home and not lose any more money on it.

No Buying Limitation

If you are looking to purchase a more expensive home that would normally require a jumbo loan, know that VA loans do not have a limit on how expensive of a home that you can purchase. You still need to be approved for the loan based on your income, but you won't have to resort to using a jumbo loan because the price of the home exceeded a certain dollar amount. 

For more information on VA loans, contact a loan financing service like Dominion Capital Mortgage.