Since 1944 the GI Bill has been there to repay soldiers for their service to our country. One way the bill helps is by making financing available for home loans. Today, let’s look at the many benefits of this program, so you can decide if it’s one that you want to take advantage of.
Benefit 1: Availability
Traditional mortgages have become harder to get since the financial meltdown of 2007 and 2008. Qualification through the GI Bill is much easier. VA loans have both lower income requirements and lower credit score thresholds. Not only that but your basic allowance for housing (BAH) is factored in as one of the qualifications to determine your ability to repay the loan.
Benefit 2: Affordability
When buying a home, likely one of the largest purchases you will ever make, the interest rate you get on the loan will play a vital part in the ultimate price you pay. Saving a half a percent or one percent on that rate can net you tens of thousands in savings over time. VA home loans through companies like Flagship Financial can help you secure that extra savings.
Benefit 3: Accessibility
The process of getting a home loan through a traditional financial institution is difficult and time consuming. From assessments to approval, providing tax forms and meeting with loan officers, the process can take weeks. With a VA loan, you can get through the process much quicker and often with less paperwork.
Benefit 4: No money down
While a traditional mortgage will generally require some down payment and, in some cases, private mortgage insurance, you don’t have to worry about that with a VA loan. Not only do you not have to have a 20 percent down payment to qualify for a VA loan, but if you skip the down payment there is no requirement to pay for private mortgage insurance, which can save you thousands of dollars over the life of your loan.
The GI Bill was designed to provide added benefits to the people who dedicate their lives to protecting our country’s freedom. Through VA loans, not only do we thank our service men and women, we help them get an affordable, low-interest loan on a home in the very country they’ve sworn to protect.