The Department of Veterans Affairs (VA) has been known to provide services and benefits to eligible Veterans, their dependents, and survivors. These benefits and services aim to help them improve their quality of life.
They have been providing various benefits, compensation, and assistance from different aspects such as health care, rehabilitation, housing assistance, and many others.
Recently, the VA released a report on veterans’ utilization of their VA benefits for fiscal year 2016. The report mainly addresses how many veterans took advantage of their VA benefits and who did not.
VA Home Loan Benefit Utilization
One of the best programs that the VA provides for eligible veterans is the VA home loan benefit.
According to the report, there are about 9.7 million veterans who at least used one VA benefit during fiscal year 2016.
2.6 million of them took advantage of the home loan guaranty benefit which also includes those who receive Special Housing Allowance and Specific Adaptive Housing benefits.
The data includes all eligible veterans who took advantage of VA-guaranteed home loan either a purchase or refinance mortgage.
The report also shows how the VA utilization trends from different benefits offered from 2007 to 2016.
Home Loan Guaranty showed a sharp decline in utilization from 2008 to 2009 but the numbers have recovered and have been steadily growing since.Learn more about VA home loans here.
Why veterans continue to use the VA home loan benefit
There are quite a few perfectly good reasons why veterans continue to use their VA home loan benefit. Here are some of those reasons:
1. No Down Payment Required
This is probably the best reason why VA home loans are preferred by eligible veterans. Having a zero down payment requirement allows the borrower to have cheaper initial costs and more flexibility in buying a home.
2. Lower Interest Rates
Interest rates applied on VA home loans are usually lower than conventional rates which means that borrowers will have a significant amount of savings despite not having to put a down payment on the home.
3. No Prepayment Penalty
When you decide to pay off your mortgage early, a prepayment penalty is collected to recoup the money that lenders might have collected in interest.
Good thing for VA home loans, eligible borrowers don’t have to think about a prepayment penalty if they want to pay off their VA home loan ahead.
4. Limited closing cost allowed
Closing costs can be a lot for a borrower. This can turn into a long list of fees that some may even be unfamiliar to them. However, there are closing costs that the VA doesn’t allow to be charged to their borrowers.
These non-allowable closing costs include notary fees, attorney fees, and some others. The complete list of these non-allowable closing costs can be found online through the VA Lender’s handbook.This way to the best VA financing.
A positive outlook for the future of the VA
It’s easy to see that veterans have been trusting the department to provide quality services to them.
With veterans’ continued patronage to the VA home loan benefit and other benefits and services offered by the VA, it’s safe to see that the future looks good for both the department and their members.Be one step closer to homeownership.