Most people don’t know about the incredible home loans available to military personnel and veterans. Today we’re talking with Brian Gater from Caliber Home loans in St. Louis. He is a military and veteran lending professional and he’s going to tell us everything veterans want to know about the great loan option the government provides.
VA Loans vs. Regular Loans
- No down payment – The biggest roadblock for people buying a home is the down payment. With a VA loan, there is no down payment required. That’s right! Zero down on your home purchase. This is the biggest benefit of the VA loan.
- Lower interest rates – the interest rates on VA loans are a ½ point to a full point below a regular loan.
- Capped closing costs – There are some unscrupulous lenders out there who take advantage of homebuyers and charge more fees than they should. They can’t do this on a VA loan. The fees are tracked and capped by the government.
- No mortgage insurance – No matter how good of deal you think you’re getting on a loan, you’re usually taking a hit in some department, like mortgage insurance. The VA loan does not allow this. You don’t even have to have mortgage insurance.
- Can be used more than once – Brian Gater has witnessed veterans who sadly missed the benefits of using their VA loan because they believed they could only use it once. They “saved it” and waited till their third and largest house to use it. There is no need to save your loan. If you buy a home with a VA loan and sell it, you can buy your next house and your next house with it.
- The IRL – Another cool thing about this loan is they have a streamlined VA loan, or an interest rate reduction loan (IRL). If you decide to refinance down the road, you can do so without having to get another appraisal done and without having to come up with all the documentation you usually would.
- It’s an assumable loan – Here is an example: say you have a 7% interest rate and, ten years down the road, you decide to sell your house. If the VA approves and you pay a transfer fee, the person who is buying your house can assume the loan at the same rate. This makes a huge selling point.
Military and VA loans are high quality loans with unbelievable options. It’s truly the best loan available. Make sure you educate yourself and share this episode with any service men/women or veterans you know so that they won’t miss out on these amazing benefits.
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