If you are an active service member or a veteran looking to buy a home, then you are likely eligible for a VA (Veteran Affairs) home loan. Naturally, our team at Midland Mortgage Corporation is proud to help home buyers of all backgrounds find the funding they need. There are some big benefits that come with VA home loans, so those that are eligible should strongly consider applying for one. Just check out these quick differences between a VA and traditional home loan:
No down payment.
Where traditional home loans generally require at minimum 5% down, VA loans don't require any down payment.
Lowest average interest rates.
VA loans have long been touted as having the lowest average interest rate out of any home loan option, including traditional bank-sourced home loans.
No prepayment penalties.
Some traditional home loans are structured in a such a way that actually penalizes home buyers who pay off the loan early! With a VA home loan, home buyers can pay off their loan as early as they want without having to face financial penalties and excessive fees.
No annual or monthly mortgage insurance premiums.
With a traditional home loan, if you put down less than a 20% down payment, then you'll typically also need to pay for monthly private home mortgage insurance on top of your mortgage payments. Or homebuyers who opted for an FHA loan will face both an upfront and annual mortgage insurance premium. In contrast, VA loans don't require any added insurance premiums.
Learn More About VA Loans at Midland Mortgage
These are just a few of the most notable differences between VA loans and traditional home loans. To learn more about the big benefits that come with VA loans or to start the application process, contact our team at Midland Mortgage Corp. today.