Any type of home loan, apart from conventional loans, often gets a bad rap. Conventional loans are portrayed as the most straightforward option and your best chance at getting the home of your dreams. In a competitive market, any factor that might cause a complication is avoided at all costs. What about VA loans? Are they a good choice for homebuyers? Here’s what you need to know.
The Big Myth
The big myth surrounding VA home loans is that you have to get through too much red tape for a home to approve and that the entire closing process will be significantly delayed. The main fear is that when the seller sees that you are using a VA loan, they will pass you up in favor of a buyer with a conventional loan. It’s time to debunk this myth and learn the truth about VA Loans.
A Stronger Offer
According to Florida Realtors, the Navy Federal Credit Union has four major regional offices and 31 branches in Florida. Individuals who are currently serving or who have served in the military are eligible for VA loans. Since the U.S. Department of Veterans Affairs backs them, they actually make a more reliable contract offer when submitting an offer on a home.
Does Not Slow Down the Closing Process
A conventional loan takes a minimum of 30 days with an average of 35 days to close. Depending on the issue at hand, any hiccup can push that time out to 45 days or even longer. A VA loan works very similarly, with an average time to close of 35 days. In fact, a VA loan can close faster if you receive a certificate of eligibility.
Easier to Qualify
Apart from being an affiliate with the military, it can be easier to qualify for a VA loan. For instance, you can qualify for a VA loan with a lower credit score than what is required for a conventional mortgage. The reason is that private lenders back a portion of these loans.
Benefits of a VA Loan
In addition to having the comparable strength of a conventional loan, VA loans offer a variety of benefits, including:
- Zero down payments
- Competitive interest rates
- Limited closing costs
- No need for private mortgage insurance
- Ability to obtain multiple VA loans
VA loans are a good option for homebuyers who currently are or have been on active duty in the military. A VA-backed loan is just as strong of an offer as a conventional loan. It doesn’t carry any higher of a risk of a delayed closing and has the same requirements, including a home inspection and appraisal. It is advisable to receive a certificate of eligibility to accelerate the closing process.
Are you ready to buy your next home? If so, let us help you navigate the home buying process. With over 30 years of experience in the real estate industry, we understand the nuances of real estate transactions and will help make this a smooth and enjoyable experience for you. Feel free to reach out with any questions you may have at firstname.lastname@example.org or 407-330-2181!