In honor of Veterans Day, we’d like to talk a little bit about VA Loans.
What is Veterans Day?
Armed Forces Day is to recognize those actively serving in the Military. Memorial Day is to recognize those who gave their life serving our country. But Veterans Day pays tribute to all American veterans—living or dead—but especially gives thanks to living veterans who served their country honorably during war or peacetime.
Veterans Day occurs on November 11 every year in the United States in honor of the “eleventh hour of the eleventh day of the eleventh month” of 1918 that signaled the end of World War I, known as Armistice Day. In 1954, President Dwight D. Eisenhower officially changed the name of the holiday from Armistice Day to Veterans Day.
In 1968, the Uniform Holidays Bill was passed by Congress, which moved the celebration of Veterans Day to the fourth Monday in October. The law went into effect in 1971, but in 1975 President Gerald Ford returned Veterans Day to November 11, due to the important historical significance of the date.
Veterans Day commemorates veterans of all wars.
For over 78 years, Veterans Affairs (VA) home loans have provided millions of veterans with the opportunity to purchase homes of their own. If you, a loved one, someone you know, or a client of yours, have served, it’s important to understand this program and its benefits.
Here are some things you should know about VA loans before you start the homebuying process.
What Are VA Loans?
VA home loans provide a pathway to homeownership for those who have served our nation. The U.S. Department of Veterans Affairs describes the program like this:
“VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.”
Top Benefits of the VA Home Loan Program
In addition to helping eligible buyers achieve their homeownership dreams, VA loans have several other great benefits for buyers who qualify. According to the Department of Veteran Affairs:
- Qualified borrowers can often purchase a home with no down payment.
- Many other loans with down payments under 20% require Private Mortgage Insurance (PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs.
- VA-Backed Loans often offer competitive terms and mortgage interest rates.
A recent article from Veterans United sums up just how impactful this loan option can be:
“For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944.”
John Bell, Acting Executive Director of the Department of Veterans Affairs Loan Guaranty Service, also explains why this program is so powerful:
“It provides early ownership for many people that would not have that opportunity to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long term financial security by being able to own a house and let that equity grow.”
- VA Loans can help make homeownership possible for those who have served our country.
- These loans offer great benefits for eligible individuals and can help them buy a VA-approved house or condo, build a new home, or make improvements to their house.
- Homeownership is the American Dream. One way we can honor and thank our veterans is to ensure they have the best information about the benefits of VA home loans.
With a VA Renovation Home loan, you can achieve your homeownership goals and make repairs or improvements to the property.
- No down payment required
- No mortgage insurance required
- Seller can contribute up to 4% of the sales price towards closing costs*
- Includes an additional $35,000 in funds for renovations**
*Concessions may exceed 4% depending on property type
**Capped at 25% of the value after renovation and will include contingency reserves and applicable fees.
- Remodel a bathroom or kitchen
- Replace flooring or siding
- Refresh interior or exterior paint
- Many more options…
According to Team Torretto at Cross Country Mortgage, as of January 1, 2022, there are no loan limits for Veterans.1. No loan limits obviously mean more purchasing power.
- Credit scores as low as 580
- No down payment or mortgage insurance
- Condos, townhomes, single-family homes, 2-4 unit income properties.
- 100% financing, 30-year fixed rates
- Closing cost credits available
- Funding fee waived with 10% VA disability or greater
1 Loan limits waived with sufficient Veteran’s loan entitlement and always subject to terms and conditions. Not all borrows will qualify. Speak to your mortgage consult for more details.
2 Requirements and benefits may vary across different companies.
Homeownership is the American Dream. Our veterans sacrifice so much in service of our nation, and one way we can honor and thank them is to ensure they have the best information about the benefits of VA home loans.
Thank you for your service!
That’s The Scoop for now. As always, feel free to reach out to any one of us here at Elation Real Estate for all your real estate needs, in and around Pleasanton, Livermore, and the rest of the Tri-Valley.
Or ask us how you can join our team!
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All the best,
Your Elation Real Estate Team