mortgage for veterans Tag

Veterans who serve our country deserve to have plenty given back to them for their service, and the mortgage industry helps lead the charge. A VA loan, reserved just for veterans or certain active service members, is a loan program with several highly beneficial elements that can’t be found in most conventional loans.

At City Creek Mortgage, we offer fixed rate VA loans with major refinancing benefits. Let’s find out about these and some of the other primary reasons veterans should take advantage of these loans if they’re able.

Down Payment

In most conventional loans, lenders expect a 20 percent down payment to kick things off. With most VA loans, though, including those from City Creek Mortgage, there is no down payment. This payment is usually to protect the lender from the risk of default, but because the federal government protects VA loans, there’s no need for this kind of speed bump.

Insurance Premiums

Down these same lines, in a traditional loan situation, there are penalties if you’re unable to come up with the 20 percent down payment. This is typically in the form of insurance premiums, which are paid for by the borrower and help give the lender that same level of protection in case of default.

Again, this is unnecessary with a VA loan. The lender is backed by the government, and there’s no risk on their end. This means veterans are spared from potentially expensive monthly insurance premiums, and can build equity or pay down debt more quickly.

Mortgage Rate

Interest rates are a vital part of any mortgage loan, and they’re much lower for VA loans than corresponding loans. They can be up to 1 percent lower in many cases, and the savings to veterans can often hit five figures over the life of the loan.

Spousal Transfer

Veterans take a number of risks to help keep us safe, and because many active service members are also eligible for certain VA loans, spousal transfer is a very important element. This allows a veteran or active service member to pass their benefits on to a spouse if they pass – either in the line of duty or for other reasons later in life. This can be a huge benefit to a surviving spouse who might be in a very tough place.

City Creek Mortgage is your go-to mortgage company for VA loans and all other types of mortgage services in Utah. Speak to one of our brokers today to find out more.

Veterans have distinctive needs and requirements that are different from civilians. Is your mortgage company veteran-friendly? If not, they need to be accommodating to veterans respectfully and effectively.

Here are some reasons your company should be veteran-friendly:

Veterans Have Different Needs

Typically, veterans have different and unique needs not like that of civilian homebuyers. Such as the VA has minimum property requirements that veterans have to meet when searching for a home in order to qualify for a VA loan.

A mortgage company that is veteran-friendly will identify this need and work with veterans to find a home that meets these necessities.

Veterans Choose VA-approved Lenders

Veterans are recommended to choose a mortgage company that is VA-approved because they are extremely familiar with the VA program.

These mortgage companies should be able to answer any questions veterans might have in regards to the VA loan program and easily work through any setbacks in the process.

Veterans Have Limited Time Frames

Veterans that are still on active duty tend to move often, and because of this, they need a lender who will understand that their time frame is limited.

Service members only get 10 days of leave to look for a new home, so mortgage companies should be understanding and able to accommodate this timeframe. By doing this, you will help them find a qualified home and get approved for a VA loan quickly and professionally.

Veterans Need Strong Resale Value

Veterans need homes that have good resale value and will sell fast due to the fact that they move sooner and more often than civilians.

Therefore, when they do come to your company for a VA loan, you should advise them on the best home-buying practices, such as how to avoid scams, how to maintain the value of their home, and how to create and maintain a budget.