A VA loan is available to as many as 20 million families in the United States as a way to express gratitude for the selfless service they provided as members of our military.
Veterans, as well as surviving spouses of veterans (who do not remarry), can qualify for VA Loans that are designed to make homeownership more attainable following service in the U.S. military.
A VA mortgage is one of the few loan programs that allows borrowers to finance 100% of the home’s value and purchase with $0 down.
There are certain qualifications you have to meet in order to qualify for a VA loan (typically at a minimum you must be a veteran or an active member of the US armed forces). But, if you do, you can enjoy lower closing costs, lower mortgage payments and the possibility of no down payment.
In addition, a VA loan offers two benefits that will substantially lower your monthly payment.
- PMI, or Private Mortgage Insurance, is not required on a VA loan. PMI is an added monthly expense required for conventional loans where the borrower finances more than 80% of the home’s value.
- Interest rates are also lower with a VA Loan, typically 0.5%-1.0% lower than a conventional loan. A lower rate combined with monthly PMI savings can substantially lower your monthly payment.
The qualification guidelines are less stringent for VA mortgages. Because the loan is backed by the government, banks have relaxed the often strict lending rules for VA loan applicants making them easier to obtain.
For many years now, Primary Residential Mortgage has been providing eligible buyers with access to VA loans in Utah. If you think you might be eligible for these loans, contact one of our qualified loan specialists at (801) 736-7736 to see how much you qualify for.