No matter what side of the political fence you sit on, we can all agree on one thing – military families make the ultimate sacrifice to protect our families, our PA new homes and our way of life. Too often, after back to back tours, veterans simply don’t get the thank you they deserve for their sacrifice.
At S&A Homes, we like to do more than just say thank you to veterans. For us, there is nothing more gratifying than helping a veteran and their family purchase a home for discounted interest rates, little to no money out of pocket and hassle-free. How is this done, you ask? Through VA Financing.
We have all heard of VA Financing, but few of us actually know the ins and outs of the program. This is due to the fact that various benefits are tied to certain years of service, whether a veteran is active with the military and more. But despite these nuances, the basics of the program remain the same. There are four key benefits:
- No Down Payment – most veterans can utilize VA Financing to purchase a home with NO money out of pocket. Not only is this is impossible with conventionally financing, but doing any less than 20 percent with conventional financing can mean rate hikes and expensive PMI.
- No PMI – Ok, what is PMI (otherwise known as Private Mortgage Insurance)? Essentially this is an insurance fee collected on a conventional loan until the buyer has paid at least 20 percent into the Pennsylvania new home. This normally means that home buyers that haven’t saved the required 20 percent will have to shell out thousands more over the life of the loan. Veterans can completely ignore PMI and will never have to worry about such a thing with a VA Loan.
- Competitive Interest Rates – Like interest rates aren’t low enough, VA Financing offers rates that are often even lower than those of conventional financing programs. Some programs start in the low 2 percent range and go up from there (as of today at least).
- Easier Qualifying Standards – VA Loan Programs inherently recognize the fact that Veterans may have slightly lower credit scores or lower income levels due to their service and build that into consideration when qualifying a veteran for a loan. Veterans won’t need to jump through nearly as many hoops to get their loan compared to the average Joe.
Drawbacks? There is one – there is a VA funding fee (this varies depending on level of military service) that is paid up front, but for the benefits above, it is a small price to pay for a lot of money and pain gained down the road.
At S&A Homes, we are used to working with Veterans and those seeking VA financing. For more information, please visit us on the web.