Va Loan Rates Equal More House And More Savings For The Veteran Home Buyer

By Author: John Cory
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Many veterans want the flexibility to purchase a home of a certain size, in a particular area, and most importantly, on their terms. Needless to say, it's no secret that conventional loans are not veteran-friendly in this regard. Fortunately, VA loan rates easily tip the scales in the service member's direction. Traditionally, VA loan rates are half to one percentage point lower than conventional mortgage rates. If you're not interested in doing the math, this could mean the ability to qualify for a $200,000 home loan instead of a $180,000 home loan!

This makes veteran loan rates very competitive in the present economy. Moreover, veteran loan rates give service members an advantage because employees in the private sector typically earn more on average. Now, is there a specific reason why VA interest rates are lower than conventional ones? The reason for this is simple: VA interest rates are backed by the Veteran's Administration Department. Therefore, banks are more willing to lend (take risks) to veterans because they have a guaranteed means to collect a portion of the loan debt.

Qualified veterans ...
... may apply for mortgages to do many of the following things:

Up to a specified loan amount, build a new home or purchase an existing home. Loan limits vary depending on the county where the home is to be purchased. The term home references manufactured homes, with or without a lot, as well as residential condominiums.

Improve, repair or make alterations to a home. Certain home improvements are allowable in conjunction with the home purchase, including energy-efficient improvements and improvements to manufactured home plots.

Refinance an existing mortgage loan to reduce the interest rate or to liquidate a portion of accumulated equity. Refinance proceeds can be distributed in cash, or used to purchase a manufactured home lot in specific instances. It is important to note that the existing home financing need not be a VA-guaranteed loan. For specific information on loan limits or cash-in-hand restrictions, consult a qualified lender.

Weatherize a home or install a solar heating system and cooling system.

All of these options make the VA loan a win-win situation for everyone. If making a home purchase is one of your priorities, do all that you can to educate yourself. Consult with a VA loan professional or visit the Veteran's Administration website to learn how you can achieve homeownership. And remember: At the end of the day, VA loan rates are lower than conventional rates and allow veterans borrow more and save more!
Learn more about the benefits of va interest rates and va loans. Check out Andria D. Rall page about good loans and mortgage opportunities online.