If you are an active or retired member of the military, you are likely eligible for a Chicago VA home loan. If this is your first home purchase as a military personnel, you will definitely want to educate yourself on the many benefits of a VA home loan:
No Down Payment
Perhaps one of the best reasons to pursue a VA home loan is because a VA home loan rarely requires any upfront, out-of-pocket expenses, including a down payment, with the exception of closing costs. A home loan with no down payment is often sought out by first-time home buyers who want to enjoy the many benefits of owning a home, but do not have the initial investment for a down payment.
No Mortgage Insurance
If you purchase a home using a traditional home loan and you do not put at least 20 percent down on the home, the lender may require you to carry private mortgage insurance, more commonly referred to as PMI. However, VA loans differ from traditional home loans, as they do not require the payment of PMI because they guarantee the loans, thereby saving you money every month.
A Low Interest Rate
VA home loans often feature very competitive interest rates, thereby making them quite attractive to military personnel and their families. Even an interest rate that is a half point or a point lower can end up saving you thousands of dollars each year in interest payments.
Assumable Mortgage
A VA loan allows you transfer your mortgage to the next buyer. For many buyers, this can be a very attractive option, thereby allowing you to sell your home faster. In addition, allowing the next buyer to assume the mortgage can pay off in a big way, especially if current interest rates are higher than your home loan rate.
Home Loan Options
VA home loans may include either adjustable-rate or fixed-rate loans, thereby providing home buyers with plenty of options when it comes to VA loans. For VA home loan buyers who don’t expect to be in their house for more than a few years, an adjustable-rate mortgage may be right for them. For individuals in it for the long haul, a fixed-rate mortgage may make more sense.
