Military veterans deserve thanks for their brave acts of courage, and they also deserve a home to call their own. If you’re a military veteran in search of a home, Wyndham Capital Mortgage can offer you a special veteran mortgage loan, which comes with unique benefits that make it easy for you to qualify for a mortgage and receive the keys to your residential kingdom. Learn five mortgage loan benefits exclusive to veterans like yourself.
1. No Need for a Down Payment
One of the things hopeful homeowners struggle with most is saving up a down payment. While zero-down-payment mortgages were once available to borrowers, the changing tides of the housing market swept that option away, but not for veterans. Because you don’t have to make a down payment before getting a loan, you have more money to put back into your savings, retirement, emergency fund and any other accounts or financial obligations you have. Another great thing about not having to save up a down payment is that you have more funds to devote to any repairs or renovations your new home might need.
2. Not Having to Pay Private Mortgage Insurance
Usually, lenders who are unable to put down at least 20 percent of the asking price of a home have to have private mortgage insurance added to their loan. This is because lenders want a safety net in the event that borrowers are ever unable to pay back their loans. With a veteran mortgage loan, however, this risk to lenders is eliminated because of the fact that the federal government backs the loan. Because veterans don’t have to worry about this extra monthly payment, it’s easier for them to build up equity in their property and save more in the long run.
3. Including Basic Allowance for Housing as a Source of Income
Active military members who receive Basic Allowance for Housing can count the funds as a source of income. The benefit of this is that allowance can go towards making your mortgage payments. One thing to bear in mind with Basic Allowance for Housing is that it’s not the same for all active military members. Factors such as your dependents, pay grade and physical location all determine how much of an allowance you receive.
4. No Prepayment Penalties
Lenders like to make as much money as possible from their loans, and when borrowers pay their mortgages early, it cuts into their total profits. To discourage borrowers from paying more than their monthly minimums, some lenders charge what’s known as a prepayment penalty. Yet another great thing about veteran home loans is that they don’t come with this penalty. Now you can pay off your loan early and make extra payments without being hit with a fine. This also frees you up to the possibility of refinancing your loan or buying another home in the future.
5. Better Interest Rates
In addition to saving money on not having to make a down payment or pay private mortgage insurance, veteran home loans also have favorable interest rates. Usually, a borrower’s interest rate for a mortgage is determined by how much risk the lender is taking with that specific borrower. Because the federal government backs these loans, lenders aren’t taking as much risk, which means they don’t have to charge as much interest on the loan. It’s not unusual for a veteran to have an interest rate that ranges anywhere from .5 to one percent lower than standard interest rates.
Find out whether you qualify for these five benefits by speaking with a mortgage professional specializing in veteran loans. You’ve served your country, now allow us to serve you and put you in the home of your dreams.