Veterans can benefit from the best mortgage options available today. To thank them for their military service, the VA loan program is offering veterans the greatest mortgage deals at the lowest interest rates.
In fact, some of these offers do not even require a down payment. No wonder almost 80 percent of veterans used the VA program to get a mortgage loan.
Do you think this is good news? Wait until you know that the VA program is not the only mortgage loan available with great benefits for veterans. There are more mortgage options just as good for veterans looking to buy a primary residence. Explore them all below.
- VA Loans: The VA program is a mortgage loan established by the United States Department of Veteran Affairs. This mortgage loan is dedicated for almost any army member with an active service period of at least 181 days during peacetime, or 90 days during wartime. The VA program offers veterans mortgage loans at the lowest interest rates without any down payment, in addition to many other exclusive benefits. Besides that, the VA loans program also supports veterans in case they were having difficulties to make their mortgage payments.
- FHA Loans: These mortgage loans are backed by the Federal Housing Administration. Although they are not exclusive for people who served in the military, veterans buying their first home often opt for the FHA loans, given that they only require a down payment of 3.5 percent if your credit score is above 580. Otherwise, the down payment rate increases to 10 percent for credit scores below 500.
- USDA Loans: The USDA loans are available for anyone in the rural and suburban area with a credit score equal to or above 640. However, what sets USDA loans apart from FHA is the zero percent down payment. This enabled many people who served in the military to buy their first home with fewer struggles. Nevertheless, the USDA mortgage loans come with some PMI payments the homeowners should meet for a while.
- Native American Direct Loans: Being a constituent of the VA loan program, the Native American Direct Loans are directed towards the development of the American land. Therefore, this mortgage loan program is exclusive for homes on federal trust land or Native American reservation.
From the comparison above, you may notice there are many differences in the programs available for veterans. However, the documents needed for to apply for these mortgage loans are all the same.
Usually, veterans applying for a mortgage loan through one of these programs are required to provide the application form, the bank statements, details about the last two paychecks, the Certificate of Release, and copies of the veteran’s W2 statements.