Are you a U.S. veteran or someone presently serving in the military and interested in purchasing a home? If so, the VA, (Department of Veterans Affairs), provides loans for military servicemen or women to help assist them with buying a home. If you are a veteran or are currently in the military and looking for a home in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact our loan specialists at Foundation Mortgage. We can work with you to determine the best financing option to put you in your dream home.
What Are VA Loans?
VA loans are mortgages issued by private lenders and insured through the Department of Veterans Affairs. Due to the fact that they are backed by the government, lenders can offer more relaxed application qualifications because in the event that a borrower is unable to make payments, the government will reimburse the lender. VA loans were originally created to help servicemen returning home from World War II the opportunity to purchase a home, and they continue to be a great home financing option for borrowers by offering lower credit requirements, no down payment, and lower interest rates.
The Benefits of a VA Loan
VA loans offer several benefits to borrowers. A main benefit is that VA loans offer a 0% down payment option to those who qualify. Additionally, VA loan interest rates tend to be lower than traditional loans. VA loans do not require private mortgage insurance, (PMI), and closing costs are usually lower than conventional loans. VA loans do not carry penalties for prepayment, so you can pay the loan off early, and VA loans can also be refinanced. There is a possibility to purchase more than one home with a VA loan, and if a borrower has difficulty making payments, VA advisors can offer assistance.
Requirements for a VA Loan
When purchasing a home with a VA loan, there are certain eligibility requirements, including:
- You must be an active military service member having served 90 days or more of active duty during wartime or 181 days or more of active duty during peacetime
- You must be a military veteran
- You must be a member of the National Guard or a reservist with 6 or more years of service
- You must be discharged from the military due to a service-related injury
- You must be a spouse of a veteran who has passed away from a service-related injury or as a result of military service
Get Assistance With a VA Loan
If you are looking for a home and are a person who has served our nation in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage can help. Contact our office today to get help with your home financing.