Let’s suppose that you are a veteran who has served in the armed forces. Today, as you think of buying a home or feel the need to get a loan refinanced, it will probably be suggested that you apply for a VA loan. However, borrowing a loan is a serious affair and you must not go ahead with your decision until you are absolutely convinced and have apprised yourself of the rationale behind applying for VA loans.
As a resident of Texas, you will probably apply for VA loans in Texas and if you really do so, here are the benefits that you can avail yourself of:
- If you have already applied for this loan once, you can do the same again with the remaining loan entitlement.
- In most cases, there won’t be any need to make a down payment.
- You could think of negotiating the interest rates with your lender.
- You won’t be required to pay a mortgage insurance premium every month.
- There will be limitations on the closing costs.
- An appraisal would let you know the property value.
There will be three types of repayment plans for a loan borrowed for a period of 30 years. You could go for Traditional Fixed Payment, Graduated Payment Mortgage or Growing Equity Mortgages.
You could be given the right to prepay your loan without having to pay any penalty.
You as a veteran could also be given financial counseling during critical times so that you don’t have to part with your home when you encounter financial difficulties.
With VA loans, you could think of buying a townhouse or a condominium unit that’s part of a VA project.
The loan can also be borrowed for simultaneously purchasing and improving a home.
VA loans also come in handy in the installation of energy-related features in a house like heating or cooling systems, insulation, water heaters, caulking, weather-stripping, storm doors and windows and other energy-saving improvements that are approved by both the lender and the VA. These features can be added at the time of buying a new house or when a home that a veteran is already staying in is refinanced.
So, you see that VA loans indeed have some exceptionally good features that make them an ideal choice for veterans.