Happy 4th of July from all of us at the Vermont Mortgage Company! We hope everyone had a wonderful day of fireworks, barbecues, and patriotism. Today, we’d like to discuss a topic related to our freedoms, and that is those who defend it. We appreciate the work those in the armed forces do to allow us to enjoy days like yesterday. Thankfully, there are programs to help our veterans, as one of the many ways to say thank you. In the mortgage world, that is the Veterans Affairs Loan, more commonly known as a VA Loan. Amazingly, even though this is a great resource for veterans, 1 in 3 don’t even know about it! So what is the VA Loan, and why does it have so many misconceptions?
The VA Loan was created by the efforts of Franklin D. Eisenhower with the GI Bill in 1944. This was so veterans could achieve the dream of getting a home after their service. The loan allows veterans who fill a certain to buy a home more easily than a conventional or FHA mortgage. Most VA loans don’t require down payments, private mortgage insurance, or a high credit score. Closing fees can be lower, as well as interest rates.
If you have any form of disability from your service, there are even more ways to help. Depending on the percentage, the property taxes could be slashed considerably. 100% disability could mean you are not obligated to pay any, meaning there would be no escrow payments. This could save you several hundred dollars a month!
There are many misconceptions surrounding the VA loan. Many believe that they take too long to close, or are a sub-par option. In reality, they can be the best option for a veteran or surviving spouse. They are also more likely to close than any other mortgage, and are incredibly efficient in closing in a timely manner. This is also not a one time thing, you will be eligible for other VA loans down the line if you need.
Of course, while these benefits are great for veterans, some things may be a little different depending on state and loan vendor. Make sure to ask questions to ensure it is the best option for you. Having a VA Loan specialist could help you save thousands. Being informed is incredibly important, and is the reason why so few have heard of the program.
If you have any questions, please feel free to give us a call at 802-863-2020. There are also plenty of websites to help answer any questions and dispel any myths that you may have heard. Once again, we would like to thank those who work so hard for us.