7 NOVEMBER 2016 – Many military homeowners benefit from using loans from the Department of Veterans Affairs. Although common, it isn’t always the case for VA home loans to be the most advantageous mortgage loan.
According to a recent Kiplinger article, “The Financial Field Manual: A Personal Finance Guide for Military families,” AAFMAA Mortgage Services COO Andy May advises all military families to compare several types of mortgages before choosing the best one. While VA loans require zero down payments and come with attractive interest rates, they also commonly require higher fees than those of other loan programs.
“Only one in three people we work with select a VA loan when they’re presented with all of the options,” May says. “Veterans with a disability rating, however, get a break on VA loan fees, usually making a VA loan their best deal. If you do get a VA loan with no down payment, recognize that if prices fall even modestly, you could wind up underwater, which means you’ll owe more than the house is worth.”
For a comprehensive discussion on the pros and cons of utilizing a VA home loan for an upcoming purchase, always contact a state-licensed loan officer. A qualified loan officer should be able to walk you through all the fees and payments that will come with the home purchase process.
For the Kiplinger full article, click here.Tags: VA; Department of Veterans Affairs; VA loans; loans; military mortgage; servicemembers; home purchase; pros and cons; benefits and downfalls of VA home loans