5 Things You May Not Know About Michigan VA Loans
In a few days we will celebrate Memorial Day, honoring those who have lost their lives serving our country. There are other ways to honor and thank veterans everyday. One of them being VA home loans. VA loans come with a lot of advantages, including 100% financing with no down payment, lower rates and more lenient credit requirements. But the benefits don’t end there. Here are some additional benefits that are often overlooked.
VA Loans Don’t Need Mortgage Insurance
Typically if a borrower does not put down 20%, mortgage insurance is required. However, a VA loan does not require a down payment or mortgage insurance, which saves veteran home owners money on their monthly payment.
There is No Prepayment Penalty
Making early mortgage payments is one way you can save money on interest. However, some lenders charge fees when you pay all or part of your mortgage loan off early. With VA loans, payments can be made at any time with no penalty.
You Can Use Your Benefit Over and Over
Your VA benefit is not just for one home. It can be reused as many times as you want.
That means no matter what chapter of life you’re in – starting a family and upsizing or retiring and downsizing – these VA loan benefits are available to you.
Your VA Loan Benefit Never Expires
Similar to their reusability, VA home loans also have longevity. In the sense that once you become eligible for a VA home loan, the eligibility never goes away. Veterans who have served decades ago may wonder if they have waited too long to use their benefit. As long as they can establish eligibility, this benefit is always available to them.
Eligibility is granted based on the length of your service and which period you served in.
To check eligibility, first obtain your DD Form 214. With that document, a VA-approved lender can request your VA Certificate of Eligibility for you, or you can request it directly from VA’s eBenefits website.
They are Available from Local Lenders
Unlike the majority of VA benefits, VA home loans are available through private companies, not the government. Private banks, credit unions, and mortgage companies handle the applications, loan approvals, and funding instead of the Department of Veterans Affairs.
The VA provides insurance to lenders called the VA Guarantee. This assures the private lenders that they will be repaid on behalf o0f the veteran if they are no longer to make their payments. This results in lenders issuing loans at unbeatable terms.
Remember, you may be eligible to buy a home using a VA home loan, even if you served a very long time ago. Check your eligibility to take advantage of these benefits!
About Michigan VA Lender, Julie Krumholz from Superior National Bank
Julie Krumholz is a VA lender in Michigan and has over 30 years of experience to help homeowners make the dream of homeownership a reality. Throughout the years, Julie has worked in processing, closing and loan origination, underwriting, QC auditing, and has even co-owned a mortgage brokerage firm. She uses her wealth of knowledge to match homebuyers with the program that makes the best sense for them, including VA, FHA, RSDA, and MSHDA loans. Contact Julie today to learn which loan program best suits your unique needs.
