Veterans have unique buying opportunities when it comes to financing in the form of VA loans. These loans can help veterans purchase homes with 0% down payment options. What’s more, the money that would be going to rent, can go towards your mortgage payment. For example, at the current VA loan rate of 5.375%, if your BAH (basic allowance for housing) is $1,905 and your loan amount is $340,000 then your P&I (principal and interest on your mortgage) will be $1,903. If your BAH is $2,955 and your loan amount is $530,000 your P&I will be $2,967. If your BAH is $3,756 and your loan amount is $670,000, your P&I will be $3,751. All of these examples show that it really makes sense to take advantage of the VA loan and buy if you are a veteran– you can be putting money towards equity if you buy a home as opposed to throwing it away on rent.
Here’s why VA loans are an excellent tool for home buying: Veterans can get VA loan options up to $1.5M with 100% financing and loans up to $2M with 95% LTV. As of this writing, VA loan rates are around 5.375% which is a very competitive rate in this market. There is no monthly mortgage insurance. 90% max cash-out refinancing options are also available.
If you have any questions about buying or selling we are always here to help! Additionally, we work with many great local lenders and are happy to put you in touch if you have questions about financing.