VA loans are well-known for helping veterans buy homes with no down payment, but did you know there are other lesser-known benefits that can make a huge difference? If you’re a veteran, you may be able to take advantage of several features beyond just homebuying. Here are some little-known VA loan benefits every veteran should consider.
No Private Mortgage Insurance (PMI)
One of the most important benefits of a VA loan is that it doesn’t require private mortgage insurance (PMI). Most conventional loans require PMI if you don’t put down at least 20%, but with a VA loan, you can avoid this additional monthly cost. This means more money in your pocket each month, especially if you have a large mortgage.
Competitive Interest Rates
VA loans typically offer lower interest rates compared to conventional loans. This can result in lower monthly payments and a significant amount of savings over the life of the loan. Even a small reduction in interest can make a big difference for your finances.
Use Your VA Loan Benefit More Than Once
Many veterans don’t realize that they can use their VA loan benefit more than once. Whether you’ve used a VA loan for your first home or to refinance, you can still use it again in the future. This benefit is especially valuable if you plan to move or buy a second home.
VA Loan for Condo Purchases
VA loans aren’t just for single-family homes. If you’re interested in buying a condo, you can use your VA loan, too. However, the condo must be on the VA’s approved list, so it’s important to check before you start shopping.
Funding Fee Exemption for Disabled Veterans
Veterans with service-connected disabilities may be eligible for a waiver of the VA funding fee. This fee typically helps cover the cost of the program, but for qualifying veterans, this fee is waived, which can save thousands of dollars.
VA Streamline Refinancing (IRRRL)
If you already have a VA loan, you can take advantage of the Interest Rate Reduction Refinance Loan (IRRRL), also known as a VA streamline refinance. This option allows you to lower your interest rate with minimal paperwork and costs, making it an easy way to save on your monthly mortgage.
No Prepayment Penalties
With a VA loan, you can pay off your mortgage early without incurring prepayment penalties. This means you won’t have to worry about paying extra fees if you choose to refinance or pay
