The savings a VA home loan can offer are immense given that the mortgage rate is typically lower than with conventional loan.
Chicago, IL (PRWEB) May 31, 2014
With the Department of Veteran Affairs in the news a lot these days Peoples Home Equity decided to cover a release on VA home loans. Peoples Home Equity wanted to remind its veteran readers that a VA home loan is a great finance option for purchasing a home, especially since mortgage rates are on a positive trend.
VA home loans are a useful and powerful way to purchase any property. VA home loans offer a zero down payment option as well as a competitive mortgage rate, both critical elements of a mortgage. As one may imagine, one must be or have served in the military for a set period of time to be eligible for a veteran loan. Some other individuals may be eligible even though they are not veterans but they are related such as a widow of fallen serviceman or women.
In order to apply for a veteran loan, Americans must first obtain a certificate of eligibility (COE). Unfortunately, having a certificate of eligibility does not mean an individual is guaranteed a veteran loan; he or she must still be approved. Veterans still need to show a certain amount of credit history to persuade the lender to approve the loan. Also the department of veteran affairs set a number of guidelines that must also be met by the applicant.
Contrary to the Department of Veteran Affairs reputation, obtaining a VA home loan is not a time consuming process. Peoples Home Equity honors it veterans and those who serve, its loan officer’s work diligently to help current/ex servicemen and women obtain a VA home loan in a timely manner at a competitive rate. The saving a VA home loan can offer are immense given that the mortgage rate is typically lower than a conventional loan. This is noteworthy for readers who are anxious about higher interest rates. MortgageNewsDaily.com shows that 30 year fixed rates may be bottoming from their recent 2014 lows as the number of daily declines has been just 2 of the past 10 market days. For FHA 30 year rate have not declined for the past 16 days. As the Federal Reserve continues tapering its quantitative easing program, and as the demand for homes continues to progress into the summer, lenders find it difficult to believe that mortgage rates will remain as low as they currently are forever. Having a veteran loan now would hedge against a resuming of the trend of rising mortgage rates which began in 2012.
Apart from a competitive rate, mortgage insurance is not required with veteran loans where conventional loans require their lien holders to spend a few extra hundred dollars a month until equity builds up to 20%. In a labor environment where the average American household salary has not changed for over a decade, savings from paying mortgage insurance matters!
For readers who have served or are serving now and thinking to purchase a property this summer, a VA home loan is definitely the affordable option. If interest feel free to contact a local Peoples Home Equity loan officer today at: 262-563-4026