Home Loans for Veterans & Active Duty Military
American Hero Mortgage is a leader in no point, no origination fee mortgage loans. Veterans in Florida who are buying a home can benefit from this program. Rates are not going to stay low forever. Now is the right time to get that house you always wanted. Our program is dedicated to the Veterans that put their personal life on hold each day to serve, protect our country.
The VA Loan Program:
Created in 1944, the VA loans program is a one-of-a-kind tool that veterans and existing service members can use to get the loan that they need to buy their home. It is also available to certain military spouses. The major advantage of this particular type of loan is that it is available with a $0 down payment. It's also guaranteed by the Department of Veteran Affairs. This type of loan is also referred to as a VA home loan or a VA mortgage.
Advantages of Veterans Home Loans vs A Conventional Loan
If you are a veteran or an existing service member, then there is no reason to opt into a conventional loan instead of a VA home loan. It is vastly superior to a conventional loan in many different areas. The first of which is the fact that it requires no money down to secure the loan.
VA Loans Require No Down Payment
There are very few $0 down home loan options available in the country and they are very difficult to qualify for. The average conventional loan from a bank can require a down payment as high as 20 percent of the loan itself. The VA loan can circumvent this obstacle because it is officially backed by the US government. Thus, the loan is a source of 100 percent financing towards a new home.
Veterans Loans Do Not Require Private Mortgage Insurance (PMI)
Being backed by the federal government has other advantages as well. For example, conventional loans often require private mortgage insurance (PMI) to be added to the monthly fees paid by the borrower whenever at least 80 percent of a home's value has been financed. This does not occur with VA loans. The government backing of the loan means that no PMI is required regardless of the financing percentage.
Banks require down payments, add extra fees, and charge high-interest rates with conventional loans because they are taking big risks with their clients. They could potentially lose a lot of money. But being backed by the federal government means that all of that risk is completely offset. The bank will get their money one way or another. That's why they can eliminate the down payment, cut back on the fees, and offer extremely competitive interest rates.
It Is Easier to Qualify for a VA Loan
The risk reduction also makes it easier to be qualified for a loan. Receiving qualification for a conventional loan can be difficult even for people with decent credit. It's much easier for a veteran or service member to receive qualification for a VA loan. The only deterrent that some people face is the amount of extra paperwork and red tape involved when applying for a VA loan.
Lower Interest Rates
Another benefit of the VA home loan is that the borrower is typically able to get a lower interest rate than the rates ordinarily available with other conventional mortgage loans. This means that monthly payments will be lower, and the borrower has the ability to pay off their mortgage faster than they could on a loan with a higher interest rate.
Where to Start?
It's important to note that the loan is not coming directly from the federal government. Instead, the government is backing the loan supplied by the lender. This protects the lender from losing money if you should default on your payments. The question is, where do you start once you've decided that you want to purchase a home?
Many people question whether they should start with their lender or with a real estate agency. In truth, you can start with either, but one of the options has some advantages. If you start with a real estate company, then they are going to ask if you have already been preapproved for a loan. Thus, it may be easier if you receive pre-approval and then contact the real estate agency, though this is not mandatory. There are a few other benefits associated with starting the search with your lender.
First, you will have a better idea of exactly what you can afford. This will protect you from shopping outside of your price range only to later realize that you can't afford the house that you wanted. If you start with the real estate agency, then you might find a beautiful $250,000 home that you absolutely love. Later, at the lender, you may learn that you can only qualify for a $150,000 mortgage. By starting with the lender, you can avoid this turmoil.
Real estate agencies are not always familiar with how the VA loan program operates. This means they may not have a good idea of what you can or cannot afford or if a particular property meets the VA guidelines. It makes a lot of sense to begin with a lender so that you can determine whether you are approved, for how much, and what sort of guidelines you need to keep in mind.
Does this mean that it's absolutely necessary to start with a lender? Of course not. Many veterans begin the search with a real estate agent because they love the thrill of house hunting. You can use free online calculators to gain a rough estimate of what you can afford. This will reduce the risk of falling in love with a house outside of your qualifications.
In addition to free calculators, there is a wealth of information online regarding the VA mortgage program. If you are a veteran, service member, or a military spouse interested in buying a home, then research should always be your first step. From there, you should consider reaching out and contacting a local lender.
Please read our testimonial page to find out what Veterans are saying about American Hero Mortgage.
Give us a call at (754) 202-4376 or simply Apply Here