Home - Finance - 12 Things One May Not Know About VA Loans
12 things one may not know about VA loans

12 things one may not know about VA loans

The military, navy, and air force are indispensable in protecting the nation against external threats and ensuring citizens’ safety. VA loans are a way to help army veterans get their home loans approved at low interest rates. Applicable to veterans and service members and their spouses, VA loans are useful ways to support Army personnel and their families. Certain aspects of VA loans, which many may not know of, increase their benefits for veterans.

One doesn’t have to make a down payment
Unlike other house loans, which require a down payment of a certain amount at the outset, VA loans do not require down payments. As a result, veterans do not have to suffer a financial crunch and can easily manage their current financial responsibilities while investing in real estate.

The closing costs are minimal
VA loans involve closing costs like other home loans. However, the closing costs for VA loans are significantly lower than those for regular home loans. These costs generally cover the expenses related to mortgage design, underwriting, taxes, insurance, and real estate commissions. Since VA loans’ closing costs are minimal, the borrower’s average expenditure is significantly reduced.

There is no PMI required
Private mortgage insurance, or PMI, is a type of insurance borrowers may have to buy if they make a down payment of less than 20% of the property’s total value. While PMI is a prerequisite for regular home loans, it is not required for borrowers eligible for a VA loan, another significant benefit of applying for this type of home loan.

The Government ensures VA loans
VA loans are a type of mortgage that does not require private mortgage insurance (PMI). However, they are still beneficial for lenders and borrowers because the government backs them. If the borrower defaults on their loan, the government guarantees a portion of the loan to the lender through a private mortgage lender. This government insurance makes VA loans a more secure option for lenders and a more affordable option for borrowers.

There is a mandatory funding fee involved
A funding fee is mandatory for all VA loan borrowers. This amount compensates for any losses incurred because of borrowers’ defaults. Although it is part of the closing costs, one may pay for it in addition to one’s loan expense.

Even those with relatively low credit scores may be eligible
Those with a low credit score may find it difficult to be eligible for a home loan, but VA loans are more flexible regarding credit scores. Those with a low credit score may also be eligible for a VA loan if they are Army personnel or spouses of veterans or service members. Also, interest rates for those with an average credit score may be the same as those with high scores. As a result, this scheme is highly beneficial for those with a bad credit report.

It’s possible to apply for a new VA loan after paying off the previous one
Suppose an army personnel needs to move to another place on duty but has already taken a VA loan for the existing property. In that case, they can secure another VA loan for a second property with a minimal or zero down payment if they have paid off the first one. This makes it highly convenient for army veterans and service members, who typically need to move frequently to new places owing to their profession.

Another eligible individual may assume a VA loan
Another significant advantage of VA loans is that another eligible person may take them over if the VA and lender approve of this handing over. However, the other person taking over the loan should also be eligible for a VA loan, meaning they should also be an army veteran, service member, or spouse of an army personnel.

There is no penalty for prepayment
Regarding VA loans, paying an amount higher than one’s monthly mortgage does not incur a penalty. In other words, there is no prepayment penalty for VA loans.

There are specific eligibility criteria
While the broad eligibility criterion for VA loans is that one should be an army veteran or service member or the spouse of an army personnel, there are specific criteria for eligibility that an applicant should meet. For example, the duration for which the individual has served in the army and the service period plays a key role in eligibility. For instance, an army officer who had served for a considerable duration in the Vietnam War is highly likely to have their VA loan approved. However, once a person earns eligibility for a VA loan, it is permanent, lasting even after decades.

The VA loan rates are relatively low
Compared to other home loans, VA home rates are low, typically 0.25% lower than regular home loan rates. Also, since there is government and VA backing, VA loans are safe for borrowers and lenders.

VA loans have low foreclosure rates
It has been observed that VA loans have the lowest foreclosure rates among home loans. This implies that army veterans, service members, and their spouses are serious about their home loan repayment, which makes the situation highly favorable for lenders.

Latest Articles

Eczema – 3 methods to manage its symptoms
health

Eczema – 3 methods to manage its symptoms

Eczema has many different stages and types. Unfortunately, about 10.1 percent of people in the country have some or the other form of this condition. Such a disease is a combination of conditions that make the skin irritated or inflamed. With proper treatment, one can manage symptoms. Red, dry, cracked, and leathery skin are the common eczema signs. Here are three useful methods that help deal with eczema and manage its symptoms: Getting the right treatment options Here are some treatments associated with eczema. Dupixent Dupixent is prescribed for children six or older and adults; for those who cannot control symptoms with other treatment measures, alternate treatments are not recommended. This monoclonal antibody works on a targeted area in the immune system. Dupixent comes in pre-filled single-dose pens and syringes, given as a subcutaneous injection. One can find this treatment option in two strengths: 300-mg/2-mL and 200 mg/1.14-mL solutions. Cibinqo This once-daily oral treatment helps manage symptoms for adults who have not seen relief with prevailing treatment options. Cibinqo is an FDA-approved treatment for adults with moderate to severe atopic dermatitis. Doses that can be taken are either 100 or 200 mg. Alternately, a 50 mg dosage is for patients with moderate renal impairment. Upadacitinib and Eucrisa Upadacitinib is a JAK1 inhibitor and helps adolescents and adults with severe or moderate eczema. However, this FDA-approved treatment can cause side effects like fever, cough, nausea, and upper respiratory tract infections. Typically, one starts with 15 mg, but the doctor may advise a 30 mg dose if that does not work. Eucrisa is also a treatment option for eczema. It is for skin-only treatment, so do not get it in contact with sensitive areas and rinse with water in case of contact. Foods to eat and avoid Eczema needs to be managed with a disciplined nutritional regime.
5 mistakes to avoid before bed for better sleep
health

5 mistakes to avoid before bed for better sleep

Have you ever woken up feeling tired and lethargic despite sleeping for seven to eight hours at night? It could be due to poor sleep quality. Disturbed sleep influences the rest of your day: how you think, your performance at work, and other tasks. The causes of poor sleep are many, including a faulty mattress, distractions in your room, or a heavy dinner. Avoiding the following mistakes before bed can help you sleep better: Staring at a screen Using gadgets close to bedtime is probably the most common mistake in the digital age. The blue light emitted from screens affects the production of a specific hormone responsible for inducing sleep and regulating the circadian rhythm. Apart from the blue light emission, the television or mobile phone sound can be a distraction that keeps you awake. High noise levels create lots of mental stimulation and disturbance, preventing the brain from shutting down. Hence, it is advisable to avoid using phones, televisions, and laptops for at least an hour before bed. Exercising Exercise is among the best solutions for good health, but you must do it at the right time. Physical activity late in the evening or at night hampers sleep patterns by increasing stress and raising body temperature. The only exercise recommended before bedtime is light stretching and simple yoga. These help relieve muscle tension and relax the body and mind, preparing them to drift asleep. You can perform intense exercises in the morning or earlier in the evening. If you have some spare time before sleeping, use it for sitting down and reflecting on the happenings of the day instead of exercising. It will help you fall asleep faster. Making poor food choices A meal with lots of refined carbs and sugar is unsuitable for dinner as it can keep you awake at night.
Migraine – Ways to manage the condition
health

Migraine – Ways to manage the condition

Migraine headaches are a devitalizing experience. It completely saps the person of energy and prevents them from being productive during these episodes. There is usually a build-up to a migraine attack which is different for every individual. The phase before the actual migraine attack is known as the aura, and people may report seeing flashes of light or experiencing a tingling sensation. Below are some options for treating migraine headaches: Treatment options Nurtec Nurtec is a treatment option that helps relieve some symptoms of migraines. It reduces the severity of headaches and sensitivity to light. Nurtec is usually taken on alternate days to prevent migraines and other pain associated with the condition. Ubrelvy Ubrelvy, a fast pain-relief, is a treatment option that blocks calcitonin gene-related peptide (CGRP) in the body. CGRP is associated with migraine attacks, and suppressing it goes a long way in treating the condition. Excedrin This pain reliever does not just treat migraine headaches but also pain in other parts of the body. Excedrin provides fast pain relief to the patient. Qulipta Qulipta is a treatment option that helps prevent migraines over a more extended period. However, medical professionals do not recommend this treatment option to people suffering from kidney or liver problems. Qulipta works by blocking the CGRP protein. Foods to help manage migraine headaches Certain foods are part of the preventive treatment for migraines. While a preventative treatment may not completely stop migraine headaches, it will help reduce the severity and occurrence of these attacks. Bananas Bananas are rich in magnesium. According to some studies, magnesium is deficient in migraine sufferers, and the mineral stops the chemicals that cause pain. Watermelons Watermelons contain around 92% water, and it is a great way to stay hydrated. Dehydration often triggers headaches in general, which could lead to migraine attacks.