Making the Most of Veteran’s Home Loans
Calling all military personnel and veterans—if you don’t currently own a home, now may be the perfect time to make the leap. For many active-duty members and veterans, homeownership is more achievable than ever thanks to the incredible financing options available through VA home loans. If you’re tired of renting, living on base, or wanting more stability for your family, a VA loan may be the key to unlocking your new home.
No Down Payment Required
One of the biggest advantages of a VA loan is the ability to purchase a home with no down payment. Unlike any other traditional financing option, eligible buyers can secure a home loan through the VA without putting any money down—90% of VA loans are issued this way. This benefit alone can make homeownership possible years earlier than expected.
No Private Mortgage Insurance
Most loan programs require buyers who put less than 20% down to pay private mortgage insurance (PMI). VA loans eliminate that cost entirely, saving buyers thousands over the life of their loan.
Lower VA Mortgage Rates
VA mortgage rates tend to be lower than conventional rates, averaging about 0.25% less nationwide. VA loans are also more flexible when it comes to credit requirements, making homeownership possible even if your credit history isn’t perfect.
Backed by the Federal Government
VA loans are guaranteed by the federal government, giving lenders added confidence and allowing them to offer favorable rates and terms. This protection benefits buyers as well—if financial hardship arises, the VA guarantees a portion of the loan on your behalf.
Freedom to Shop for the Best Rate
The federal government does not set mortgage rates for VA loans. Buyers can shop around with banks, credit unions, and mortgage lenders to find the best possible rate and loan package. This flexibility ensures you get the financing that fits your needs.
Flexible Loan Options
Life in the military can change quickly—your home financing shouldn’t limit you. VA loans offer:
- No prepayment penalties
- No early exit fees
- Eligibility for fixed or adjustable-rate loans
- Financing for new construction, existing homes, and more
Unlimited Refinancing Opportunities
You can refinance a VA loan as often as needed, with no restrictions on timing or number of refinances. You can also choose to refinance into a non-VA loan later if circumstances change.
Easier Qualification
Approval rates for VA loans are higher than other loan types—approximately 72% of VA applications are approved compared to 68% for conventional loans. VA support gives lenders the confidence to approve buyers with broader credit profiles.
Lower Closing Costs
The VA limits the amount lenders can charge in closing costs, keeping more money in your pocket. These savings can help cover moving expenses, new furniture, or other home-buying essentials.
Assumable Loans
One unique advantage of VA loans is that they are assumable. If you sell your home to another qualified VA buyer, they may take over your existing loan—including its interest rate. This can be a huge selling advantage, especially when rates rise.
Who Qualifies for a VA Loan?
You may qualify for a VA loan if you are:
- An active-duty service member
- A veteran
- A member of the National Guard or Reserves
- A surviving spouse of a veteran
- A cadet at the U.S. Military, Air Force, or Coast Guard Academy
- A midshipman at the U.S. Naval Academy
- An officer with NOAA
Minimum service requirements may include:
- 181 days of active duty during peacetime
- 90 days of active duty during wartime
- Six years in the Reserves or National Guard
- Being an unremarried surviving spouse of a service member killed in the line of duty
Ernest Homes Proudly Supports Military Families
At Ernest Homes, we proudly support veterans and active-duty military members. We offer special incentives for qualifying buyers and are here to help guide you through the VA loan process so you can maximize your benefits and purchase a home you love.
Ready to explore new homes eligible for VA financing? Contact our Sales Team today to learn more.
