Buying a new home in Virginia Beach VA can be an exciting experience. Whether you’re moving across town or across the country, buying a house is an important milestone impacting your future. Just as with any major decisions in life, deciding on the type of financing that is best for you, should be carefully researched.
Many military and veteran home buyers in Virginia Beach VA choose to finance their home with a VA Loan, and here are both the pros and the cons of VA financing.
Pros of VA Financing:
- Most veterans are eligible for a VA Loan.
- No down payment is required.
- VA Loans offer competitive rates, and often the VA rate is better than a conventional rate.
- VA Loans are guaranteed and insured under Home Loan Guaranty Program, which is administered under the Veterans Benefits Administration.
- The VA Loan program does not require monthly mortgage insurance
- Sellers can pay off a borrower’s debts as part of the contract (Limitations do apply)
Cons of VA Financing:
- Your offer to purchase may not be as strong as one with conventional financing.
- There is an upfront fee of anywhere from 1.5% – 3.30% of the loan amount, AKA the funding fee for a VA Loan. This is financed into the loan.
- The appraisal process is stricter than with conventional financing.
- Houses must meet VA standards or repairs MUST be completed prior to closing by the seller.
It’s also important to note that short-sales and foreclosures are much harder to purchase when using VA financing than with conventional financing. Many of these distressed properties are sold “as is”, which is not an option when using a VA Loan.
575 Lynnhaven Parkway Suite 101 | Virginia Beach VA 23452 | 757-652-3999
Movement Mortgage, LLC is an Equal Housing Lender. NMLS # 39179 | 877-314-1499. Movement Mortgage, LLC is licensed by the “Virginia Bureau of Financial Institutions” Lic # MC-5112. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. “Movement Mortgage” is a registered trademark of the Movement Mortgage, LLC, a Delaware limited liability company.
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