Are You a Veteran? Learn about VA Loans.Monday, November 09, 2020
With Veteran’s Day coming up, we wanted to share some helpful information on loans for veterans, also known as VA loans.
Are you a veteran looking to buy or refinance a home in Hawaii? You may qualify for a VA loan for your mortgage. Unlike conventional loan programs, VA loans are backed by the Department of Veterans Affairs. As a veteran, the VA loan program gives you access to some of the best home loans available.
American Savings Bank is proud to provide loans for eligible veterans and service members through the VA loan program. See how a VA loan from ASB could help you get the best mortgage for your dream home.
LITTLE TO NO DOWN PAYMENT REQUIREMENT
Most mortgages require you to make a sizeable down payment when purchasing your home. That’s difficult on any home purchase, but it can be especially hard in Hawaii where we have some of the highest real estate prices in the country. Here, a down payment on a home could quickly wipe out your savings.
The VA loan program helps you avoid spending all your cash on your home purchase. With a few exceptions, your VA loan comes with no down payment requirement. Depending on your specific loan, you might be able to finance your entire home purchase.
NO NEED FOR MORTGAGE INSURANCE
The traditional down payment amount is 20 percent of the purchase price. For a home with a purchase price of $400,000, that’s $80,000 in cash. Many buyers in Hawaii have trouble putting down the full 20 percent and have to pay for mortgage insurance to cover their loans.
Mortgage insurance helps protect your lender if you default on your loan. Most conventional loans with less than 20% down require private mortgage insurance. FHA loans, common for first-time home buyers, use a similar type of insurance and require you to pay a mortgage insurance premium. Regardless of the type of mortgage insurance you have, the premiums increase your monthly payment.
You won’t have to worry about mortgage insurance with a VA loan. Even if you finance the whole purchase price of your home, you won’t be on the hook for mortgage insurance. The VA does require a funding fee, but you can usually include this fee in your home loan.
USE TO PURCHASE OR REFINANCE
VA loans are available for both purchasing a new home and refinancing an existing mortgage.
Refinancing a loan lets you take advantage of more favorable loan terms or offers. For example, you might want to refinance your mortgage to get a better interest rate on your loan. If you’re an eligible veteran, you could refinance to a VA loan and receive all the benefits it has to offer. For eligible holders of existing VA loans, VA offers a streamlined refinance program which simplifies the qualifying and reduces the costs associated with traditional refinances.
GOVERNMENT GUARANTEE PROVIDES FAVORABLE TERMS
Most veterans are excited to learn VA loans often come with some of the best loan terms available. Lenders like ASB generally offer more favorable rates and repayment terms on VA loans because they’re backed with a government guarantee.
GET YOUR DREAM HOME IN HAWAII WITH A VA LOAN
What are the benefits of a VA loan? From reduced costs to some of the best interest rates, most eligible veterans find a VA loan to suit their needs.
Get in touch with one of our ASB mortgage officers today to learn more about the VA loan program and see if you qualify.