The VA offers loans to help servicemembers, veterans and eligible surviving spouses purchase a home. These loans are provided by private lenders, such as banks and mortgage companies, and a portion of them is guaranteed by the VA, which means the lender can provide you with more favorable terms.
A VA loan is perhaps the most powerful and flexible lending option available to North Carolina homeowners today. Instead of issuing loans, the VA pledges to repay about a quarter of every loan it guarantees in the unlikely event that the borrower defaults. This gives VA-approved lenders greater protection when lending to military borrowers and often leads to highly competitive rates and terms for qualified veterans.
Benefits of VA Loans
The most significant benefit of a VA loan is the borrower’s ability to purchase with no money down. Apart from the USDA’s Rural Development Home Loan and Fannie Mae’s Home Path, it’s all but impossible to find a lending option today that provides borrowers with 100 percent financing.
VA loans also come with less stringent underwriting standards and requirements than conventional loans. In fact, about 80 percent of VA borrowers could not have qualified for a conventional loan. These loans also come with no private mortgage insurance (PMI), a monthly expense that conventional borrowers are required to pay unless they put down at least 20 percent of the home amount.
Check out the other benefits to purchasing a home in Raleigh or beyond with a VA loan:
- Competitive interest rates that are routinely lower than conventional rates
- No prepayment penalties
- Higher allowable debt-to-income ratios than for many other loans
- Streamlined refinancing loans that require no additional underwriting
Call Integrated Funding to Speak With a North Carolina Mortgage Advisor About VA Loans
Interested in purchasing a home with the assistance of a VA loan? Contact Integrated Funding in Raleigh today. We’ll give you more information about VA loan benefits and eligibility, as well as other loan programs. Our home mortgage advisors will even help you apply for a VA loan!
Integrated Funding is proud to offer guidance and assistance with a variety of loan programs including VA loans in the North Hills area and throughout Raleigh, Cary, Apex, Wake Forest, and surrounding areas of North Carolina from Wilmington to Charlotte.