7 Perks of VA Loans

7 Perks of VA Loans

1. No Down Payment

The biggest reason buyers don’t move forward with a home purchase is because they haven’t saved enough for a down payment.  Here is the good news: VA loans do not require buyers to come up with a down payment as they allow for 100% financing.  Any cash that you have in the bank can go toward fixing up your home, property taxes, and an infinite number of other things!

Related: 2 Steps for Getting Closer to Home Ownership 

2. Multiple-Uses

For investors, a VA loan allows you to purchase multiple-unit properties such as a duplex or four-unit apartment structure.  This means you could live in one unit while collecting rental income on the remaining units.  Best case scenario: the rent pays 100% of your mortgage and puts a little cash in your pocket simultaneously.  

In addition, VA loans may be used more than once up to the maximum dollar amount for a given area.  In fact, loan limits will no longer be applicable beginning January 1, 2020.  This means that as long as you meet the criteria for multiple VA loans, you may continue to use that type of loan.  Talk with an experienced mortgage broker to learn more!

3. Refi

Thinking of refinancing?  Most financial institutions will loan 70-80% of your home’s value upon refinance.  However, if you have secured a VA loan, you might qualify for up to 100% of your home’s value.  While it isn’t prudent to take that much cash out against your home, it is an option!

4. Fewer “Surprises”

Both the VA loan and inspection process are extremely thorough which results in fewer surprises pertaining to maintenance.  This is extra “padding” when purchasing a new property and added security knowing that you are likely getting a good home.  

Related: 5 Surprise Expenses for New Homeowners 

5. Late Payment Counseling

As the VA guarantees a percentage of your loan, this means they will fight hard to avoid a situation such as a foreclosure.  They work with those who are struggling to make payments in an effort to avoid this painful process and protect them from homelessness.  

6. High Caliber Pros

Anyone who performs a service for your homes, such as a contractor, inspector, or appraiser is fully vetted by the VA.  You can expect a high caliber of pros working to your benefit.  

7. Assumable

VA loans can be assumed by other veterans.  If you’d like someone to take over your mortgage, find a veteran to move into your home!  Seems like a win-win!  

For more information, contact The Aitken Home Team today!

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Phil Aitken, Owner/Broker
Phil Aitken is the Owner/Broker with Your Home Sold Guaranteed Realty - Phil Aitken Home Team and has over 13 years of Real Estate experience. Phil’s faith and desire for his family’s continued security fuel his business growth and leadership. The Phil Aitken Home Team continues to profoundly impact the people of Jacksonville via supporting several faith-based organizations. Phil gives back a portion of every real estate transaction to The Tim Tebow Foundation and Rethreaded. Find Phil's full story here.