With the Fourth of July coming up, a day where we celebrate our independence, we thought it would be appropriate to do a quick article about one of our loan products that specifically helps those Americans who help us maintain our independence. The VA loan is a government loan that is offered to United States Veterans both past and present. The VA loan is great for veterans who are first time home buyers, but it can also be used by second and third time home buyers.
VA Loan Benefits:
- When you obtain a VA loan the federal government (the VA) is actually guaranteeing a portion of the loan, which allows lenders and banks to offer more favorable terms to the borrower.
- VA Loans usually have lower interest rates than many other loan types.
- PMI or monthly mortgage insurance is not required (for comparison all FHA loans require monthly mortgage insurance)
- The VA loan is one of few loan products in Michigan that requires zero down payment for any property.
Of course there are also other loans that veterans and current members of the military can utilize. Many veterans choose to use a conventional mortgage to purchase their home because of the competitive rates. Where the VA loan requires no monthly mortgage insurance, it does include a one-time up front mortgage insurance fee that a conventional 20% mortgage would not require.
Whether you are an active military member returning from duty who would like to own a piece of the American Dream, or a veteran looking to purchase your next home, give us a call and we can see if you qualify for the VA Loan or other loan types that might be right for you. We are your local Grand Rapids Mortgage Company.