For active duty, veterans and qualifying surviving spouses, a home loan guaranteed by the Department of Veterans Affairs is one of the most attractive advantages you can receive in thanks for your service. If you or your qualified spouse has ever served long enough to qualify for a “VA loan” on your primary residence, it’s a good idea to ask yourself if a VA loan is the right choice for your family. The Federal Savings Bank proudly specializes in VA lending for prospective homeowners, and in educating prospective borrowers through our free online Learning Center. Read on to learn more about how a VA home loan can work for you.
Why Should I Get a VA Loan?
While each veteran or eligible military spouse may have different reasons for applying for a VA loan, there are a few reasons why VA loans are so popular:
- Low or no down payment. According to Military.com, “VA loans are some of the only loans remaining that offer no down payment” when buying a new home for your family. While a conventional, non-VA home purchase might require up to 20% down, many VA loans eliminate the need for a down payment entirely, allowing you to borrow the full cost of your home in some cases.
- No private mortgage insurance. Many home loans require borrowers to pay an extra premium each month in PMI, or “private mortgage insurance,” at least for the first few years of the loan term. In the case of a VA loan, the VA’s promise to guarantee part of your mortgage eliminates the lender’s need to collect PMI.
- Competitive interest rates. Because of the reduced risk associated with VA home loans, lenders will often offer better rates available for qualifying VA borrowers.
What Kinds of VA Loans Can I Apply For?
VA loans are intended for primary residences. In some cases, this may mean purchasing your home with a VA loan, but there are different kinds of VA mortgages. You may be able to get a VA construction loan to build a custom home on a new lot or refinance your existing mortgage to a better interest rate. Whatever your homeownership goals, The Federal Savings Bank stands ready to help you meet them. Get in touch with one of our Veteran Lending Specialists today so you don’t miss out on the perks that you deserve in return for your service to our country.
Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.