Unlocking the Dream of Homeownership: Benefits of VA Loans

Owning a home holds great meaning for veterans, active-duty service members, and their families—it signifies security, stability, and the realization of an important milestone. However, navigating the journey to homeownership can feel overwhelming, especially with the financial challenges that come with conventional mortgage loans. At Academy Bank, we are committed to offering support and tailored financial solutions to help military personnel purchase a new home. With so many mortgage options available, sometimes it’s difficult to choose the best option for your needs. Let’s take a look at some of the biggest benefits of VA home loans and how they can help you purchase the home of your dreams.

Why should I apply for a VA Home Loan?

A VA home loan is a customized mortgage program supported by the U.S. Department of Veteran Affairs (VA). These loans are secured through approved private lenders, like banks and mortgage companies. VA home loans are designed specifically for veterans, active-duty service members, and certain military spouses. They are tailored to make homeownership accessible.

For more information on VA home loans^* and how they work, explore our collection of military mortgage articles on our blog page!

No Down Payment Required

One big advantage about VA home loans^* is that you don’t have to worry about a down payment. Most  mortgage types, like FHA or conventional loans, make you shell out at least 3.5% upfront for a down payment. For example, the down payment on a $250,000 home would amount to approximately $12,000. With a VA loan, you skip all the saving games and jump right to the finish line to purchase your dream home. Plus, you’ve got more cash in your pocket to handle other home-buying expenses.

Favorable Loan Guidelines

VA home loans stand out from many other loan programs due to their forgiving eligibility criteria. Whether you’ve faced credit challenges like a lower credit score, bankruptcy, or even foreclosure, you are not automatically sidelined. While specific lenders have their own standards, the VA doesn’t set a minimum credit score. This flexibility ensures that your past financial hiccups don’t stand in the way of your dream home. So, take your time, shop around, and find a lender who understands and supports your journey to homeownership.

No Private Mortgage Insurance Needed

Another special feature of VA home loans is that you don’t have to deal with Private Mortgage Insurance (PMI). This means more money in your pocket! But what is Private Mortgage Insurance and why does it matter? If you put down less than 20% on a conventional loan, you will more than likely be required to pay for Private Mortgage Insurance. It’s essentially an insurance policy for the lender, not for you, in case you stop making payments on your loan. While Private Mortgage Insurance can help many people purchase a home through a conventional loan, it also increases the homeowner’s overall loan costs. That’s why VA loans are an excellent alternative. With no PMI, more money stays in your wallet each month.

Applying for a VA home loan with Academy Bank

Selecting a lender for your VA home loan^* is an important decision. Avoid delays and extra paperwork by choosing a LAPP lender authorized by the VA. At Academy Bank, we are proud to serve our nation’s heroes as a LAPP lender. We take this role seriously and strive to stand as an invaluable resource for our military personnel throughout the entire homebuying process. Our team of accredited Loan Officers are experts in VA home loans and can help you find your new home.

Get in touch with one of our Loan Officers or give your local branch a call to kickstart the journey towards turning your homeownership dreams into a reality.

 

 

Member FDIC

^*Subject to credit approval. VA funding fee may apply. VA loan qualification guidelines apply. Borrowers pay third party fees that include the appraisal fee, title fees, insurance, etc.  Additional restrictions and fees may apply.  VA loans are offered exclusively to qualified military service members.