Understanding the Benefits of a VA Mortgage Loan

Veterans Administration (VA) mortgage loans in Wisconsin are becoming very popular. Mainly, because of the lack of no down payment mortgages available. Home buyers are facing the reality that qualifying for home loans are becoming more difficult. This specific government mortgage loan program proves home buyers with another option.

Just to recap, a person that is currently active in the military or is a veteran of the military, is eligible for a VA mortgage loan.

Here are the benefits for a VA loan in Wisconsin:

1. No Down Payment Is Allowed - Yes, this is a true no down payment mortgage loan that allows you to finance 100% of the purchase price.

2. No PMI (Private Mortgage Insurance) Payment - With just about any other mortgage loan, if you don't have a 20% down payment, you are required to pay PMI as part of your total monthly payment. Combined with no down payment, not having to pay PMI allows many home buyers to qualify for a larger VA mortgage loan.

3. Not Credit Score Driven - Credit scores are normally a major factor in determining whether or not you are approved for a mortgage loan. VA mortgage loans are approved based on the ability to repay the mortgage payment. Along with this, compensating factors are used to help strengthen your loan application, which helps in getting you approved with lower credit scores. There is no particular credit score that will or will not approve your VA mortgage loan, so don't let this hold you back.

4. Favorable Fixed Interest Rates - Now, interest rates are determined on a variety of factors, so every situation will be different. What to remember is how favorable a VA mortgage loans fixed interest rates are. These fixed interest rates can rage anywhere from only 0.25% - 1% higher than regular conforming fixed rates. So, a veteran or active military borrower will be approved for rates that are not much higher than some one that has great credit and a large down payment.

5. Multiple VA Mortgage Loans - This program is well know for first time home buyers, but what many don't know is that this program can be used a second and sometimes a third time by the same borrower. Whether it is a refinance or the purchase of another home in the future, the VA mortgage loan in Wisconsin, can be used multiple time. This is determined by your certificate of eligibility. Once your certificate of eligibility is received, it will state if you are eligible for another VA mortgage loan in Wisconsin.

Whether you, your family, friends, or co-workers are active in the military or are a military veteran, please share this valuable information. Many people do not understand the benefits of a VA mortgage. Education is important when deciding what mortgage best fits your situation.