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Benefits of a VA Loan for Military Home Buyers

Louisiana REALTORS® • May 12, 2023

A VA mortgage, referred to as a VA loan, is a house loan that is supported by the Department of Veterans Affairs (VA) of the United States. If you wish to buy or refinance a property, it is available to qualified veterans, active-duty service members, and their spouses. Let’s take a look at some of the advantages of receiving a VA mortgage.

 

No Down Payment Required

You don't need to make a down payment with a VA mortgage, which is one of its largest benefits. This entails that you can get 100% financing for a home purchase, which is a huge advantage for people who don't have a lot of money set aside for a down payment.

 

Lower Interest Rates

Interest rates for VA mortgages are often lower than those on normal mortgages. This can help you save a sizeable sum of money over the course of the loan, which will lower your monthly mortgage payments.

 

No Private Mortgage Insurance (PMI) Required

The majority of traditional mortgages need PMI when the down payment is less than 20%. Your monthly mortgage payment may increase significantly if you have PMI, making it more difficult for you to finance your home. Even if you don't put any money down, you are not required to pay PMI with a VA loan.

 

Easier to Qualify

Conventional mortgages are more difficult to qualify for than VA mortgages. This is due to the VA's more flexible debt-to-income and credit score standards. This implies that you might still be able to qualify for a VA mortgage even if you have a lower credit score or a greater debt-to-income ratio.

 

Closing Cost Limits

The VA has restrictions on the amount of closing costs that lenders may charge, which might save you a sizable sum of money when you are buying a home. Additionally, the VA permits sellers to cover closing costs for the buyer up to 4% of the loan amount.

 

Flexible Requirements

Compared to regular mortgages, VA mortgage standards are more lenient. For instance, the VA has liberal underwriting standards, which may make it simpler to be approved for a VA mortgage. Additionally, the VA permits flexible occupancy requirements, so you might be able to use a VA mortgage to buy a second home or an investment property.

HOME BUYER RESOURCES

Consumer Guide Update: Preparing for Homeownership

By Louisiana REALTORS® • February 19, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on preparing for homeownership. This guide covers what prospective buyers should consider as they kick off the home purchase process, including the importance of credit scores, mortgage pre-approval, down payments, budgeting, and educational resources. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Preparing for Homeownership Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with potential clients to ensure they have the information they need to be successful in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover property taxes.

Consumer Guide Update: Escrow and Earnest Money

By Louisiana REALTORS® • February 14, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on escrow. This guide covers what homebuyers should know about earnest money deposits, including the general terms and use cases in real estate transactions. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Escrow and Earnest Money Pricing Your Home Preparing to Sell Your Home Fire Damage and Policy Coverage Flood Insurance Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover preparing prospective buyers for homeownership.

2026 LR Officer Elections, RVPs & NAR Director Applications

By Louisiana REALTORS® • February 12, 2025
The Louisiana REALTORS® Board of Directors will conduct several elections this Spring. Interested candidates that meet the qualification who are looking to serve at either the state association level or the national association level are encouraged to view the criteria and submit an application. An application that is not submitted on the appropriate form or not submitted pursuant to the instructions shall not be considered as submitted timely.
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