Former members of the United States Armed Services may be eligible for loans through the United States Department of Veterans Affairs. VA loans have several significant advantages over loans provided and secured through private sources.
First, VA loans typically have lower interest rates and lower upfront costs than loans available through private parties in New York. Over the long run, that can save borrowers tens of thousands of dollars.
Second, VA loans typically guarantee borrowers the ability to skip up to two mortgage payments over the course of repayment. That offers a little extra financial flexibility if things go wrong. For example, if you lose your job and your spouse has a health crisis in the same month, it would be nice to be able to skip the mortgage payment that month.
Third, borrowers through the VA program often have the ability to take out extra capital for home improvements related to energy efficiency. If you’re buying a new home with windows from the 1950s, for example, you could borrow a few thousand dollars extra to pay for new, energy-efficient windows.
VA loans aren’t available to everyone. Only former members of the Armed Services holding honorable discharges are eligible in most cases. A number of benefits you are eligible to receive may also vary according to your rank and time of service. A captain with 20 years of time served, for example, is eligible for much greater benefits than a private with 4 years of service.
Finally, while VA loans are usually a great deal, some people may find that private loans offer better rates. If you have very high income and great credit, for example, you may be better off avoiding the VA.
VA loans are available for both new home purchases and refinancing projects in New York, so if you think you might qualify, contact a friendly banker today.