VA Loans can be a powerful tool for Hawaii Veterans when it comes to purchasing real estate. That is because they offer lenient qualification guidelines for active duty, Veterans and surviving spouses.
At Element Mortgage, we have great respect for our nation’s Veterans, which is why we honor them by offering these loans because they deserve the ability to reach home ownership, no matter their financial circumstance. That is also why we take mortgage education seriously when it comes to explaining to Veterans how VA Loans work and the benefits that come with this loan program.
Below are five benefits of VA Loans for Hawaii Veterans.
- VA loans have a government guarantee – These loans are backed by the U.S. Department of Veteran Affairs, and because of that, the federal government is guaranteeing that a piece of the loan will be repaid even if the borrower can’t make the monthly payments. What this does is gives lenders more assurance that they aren’t taking on a large amount of risk when lending.
- No down payment on a VA Loan – With VA Loans, 100 percent financing* is available, which means there is no down payment requirement. So, a VA Loan truly can be a no-money-down home loan.
- No mortgage insurance for VA Loans – Generally speaking, for most other home loan programs, if a buyer has less than 20 percent down, they will be required to pay monthly mortgage insurance. This protects the lender should the borrower be unable to make their monthly payments. With a VA Loan, however, there isn’t such a requirement. This helps make VA Loans affordable for Veterans at the time of close and ongoing.
- VA Loan closing costs can be lower – The amount that lenders can charge in the closings costs for VA Loans is limited, which means Veterans who utilize this benefit will save more money in the loan process than they would with another loan program.
- VA Loans don’t allow a prepayment penalty – If a Veteran purchases a home with a VA Loan and later decides to sell the property, there isn’t a penalty for pre-payment. That is the case no matter how much time has passed. In addition, there aren’t refinance restrictions either.
If you have any questions about getting a VA Loan in Oahu, contact us to speak with one of our mortgage consultants. We will take the time to understand your unique financial picture and help you obtain a loan that is ideal for you. We have years of experience with VA Loans and know the Oahu market well.
*Qualifying factors may apply. Example VA: Loan amount $300,000, 0% down, monthly payment without taxes and insurance $1,844.77 APR 4.432%
for Hawaii blog, trigger term (100% financing)