VA Mortgage Loan – A Great Advantage to Everybody

Protecting the nation and ensuring the safety of the people is not an easy task. People in the military service sacrifice their life for the welfare of the country. As a way of giving back, veterans and servicemen can apply for VA loan when buying a house. It is a type of mortgage loan subsidized by the American government, and its primary purpose is to make the home ownership dream come true.

There are different types of mortgage loans out there, but only VA mortgage loan offers the following advantages:

It does not require down payment

With the traditional mortgage, you will need to set aside money for the down payment. The amount varies depending on the percentage requirement of the lender as well as the total cost of the home. If the house you want to purchase is located in a high-end subdivision, then you have to prepare for a huge down payment. With the VA home loan, you don’t have to worry about the down payment because it is waived. In other words, you will become a homeowner without down payment. Of all types of loans available in the market, it is only the VA loan that does not require down payment.

Affordable interest rate

The VA loan offers affordable interest rate, in fact, more affordable than other types of loan. If the rate is low, the monthly payment is also small. In other words, you will not have a hard time paying your monthly loan obligation, and you get to pay the loan faster than others with expensive rates.

No PMI – Private Mortgage Insurance

The country experienced housing recession some years ago. The bank lost a lot of money because of that and as a precautionary measure, banks are now insuring themselves in the form of private mortgage insurance. It is added fee for loans that don’t have the required 20% down payment of the appraised home value. If you are default with your monthly payment, the lender can protect itself through the PMI. The VA loan will not require you to pay a down payment, which also means that you will not be required to pay the private mortgage insurance.

Other benefits

• You can prepay the loan without having to worry about the penalty or charges.
• If you put the home for sale, the mortgage can be taken over by the buyer.
• If you have financial difficulty, you will be given special counseling to help you manage your financial resources properly.

If you are looking for a VA-approved lender, then you should consider Freedom Mortgage. It is the most preferred lending institutions in the United States. For over 25 years, Freedom Mortgage Corporation helped a lot of people in making their home ownership dream come true. Get to know more about the company by browsing this link  https://www.facebook.com/FreedomMortgage/videos.

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