Advantages To Using A VA Loan Instead of Cash When Buying A Home

The U.S. Department of Veteran Affairs has provided guaranteed home loans for veterans for 70 years.

These loans have enabled millions of active duty military personnel and veterans to get loans at favorable rates that make home ownership accessible for all military members.

Even if you have cash to pay for a home, these loans can provide a number of significant benefits to those who qualify.

Advantages of VA Guaranteed Loans Over Cash Purchases

Although you may have the cash on hand to purchase your home, you should consider the many advantages that a VA home loan can provide. These include:

· Allows you to keep your cash for other purposes

· Allows the buyer to negotiate a good interest rate for a home loan

· Eliminates the additional cost of mortgage insurance

· Provides prepayment without penalty

· Allows buyers to roll VA funding costs into the loan to reduce cash outlay

· Provides a home interest tax deduction

· Allows homeowners to easily refinance the loan through the Interest Rate Reduction Refinance program, which offers a streamlined process for refinancing previously held VA home loans

· Provides accurate information about the appraised value of the property

· Allows a new buyer of the property to assume the VA home loan.

· Provides VA help with re-negotiating terms in case of non-payment of the loan

Determining Eligibility For A VA Guaranteed Loan

Not all lenders participate in the VA guaranteed home loan program.

However, many do participate. These lenders generally have specially trained personnel or departments to handle VA home loans and know the protocol for applying to the program.

You must fulfill a number of requirements to be eligible for a VA guaranteed home loan.

· You must have stable, reliable income to make payments on the loan.

· Your income must be enough to leave a certain amount for other expenses in addition to the loan payment.

· You must be an active duty service member or a veteran of past service.

· You must have been discharged honorably.

· You must have good credit.

· You must submit a Certificate of Eligibility, which documents the period of your past service or authenticates your current service.

This document contains your service number, discharge status, current commander and other information that proves your eligibility under the program.

Your lender will provide details about getting your Certificate of Eligibility. You can also get information on the VA website.

Using Your Cash For Other Purposes

With a VA loan, you are not required to put down money as a down payment on the property.

You can use your cash for other purposes, such as making essential updates on the property to increase its resale value, for upcoming educational expenses for children or for any other large expenditure.

The benefits of the VA home loan program allow you to enjoy significant advantages without tying up your cash.

The many advantages of getting your home financing through the VA guaranteed loan program make a compelling case for using these loans for mortgaging your home instead of using cash.

Our VA Loan Specialist Jimmy Vercellino helps veterans obtain the loans they are entitled to.

He served in the United States Marine Corps, and now devotes himself to the Veteran home buyer in the Phoenix area, fulfilling a passion of his while at the same time helping others achieve home ownership.

Be a proud homeowner today.

For more details call 480-351-5904 or visit the site

www.valoansforvets.com

VA Loans for Vets 7702 E. Doubletree Ranch Road, Suite 220

Scottsdale, AZ 85258 Phone: (480) 351-5904

Email: jimmyv@fcbmtg.com