VA HOME LOANS, A GREAT ZERO DOWN OPTION
VA home loans are a great option for veterans or surviving spouses when it comes to down payment needs. VA home loans are available with no money down to eligible veterans.
One of the biggest problems folks have is saving the down payment money when it comes to buying a home. Whereas the VA home loan requires zero down payment from the borrower there are still closing and prepaid costs. These costs can be shifted to the seller if they are willing to pay concessions toward the buyer's costs to get to closing. This means a veteran can buy a home with very little or no money out of his/her pocket.
Another thing to be aware of is that VA has a lump sum up front mortgage insurance fee that rolls into the loan. This is not cash needed at closing, but one should be aware of it when weighing options. If a veteran is receiving disability payments from the Veterans Administration this fee may be waived depending upon the circumstances.
On the plus side there is no monthly private mortgage insurance on a VA loan. Whereas there is no guarantee as to the path of interest rates generally they are lower than conventional rates.
So VA home loans are a great zero down option for veterans and spouses in my Kentucky market. A program veterans should consider when purchasing a home, or refinancing.