Why Use a VA Loan to Buy a Home?

Millions of veterans, active-duty service members and surviving spouses have achieved the dream of homeownership through the VA loan program – and for Utah residents who are eligible, this form of financing is certainly worth considering.

Backed by the U.S. Department of Veterans Affairs, VA home loans offer significant benefits to first-time homebuyers. Read on, and you’ll see what we mean.

VA loan Utah

No Down Payment

Unlike most other types of mortgages, VA loans don’t require a down payment. The ability to finance 100 percent of the purchase price of a Utah property is a huge advantage, especially for first-time homebuyers who are struggling to save money.

Easy Qualification

VA home loans feature looser credit score requirements than other mortgage programs, and VA lenders are often have more lenient debt-to-income ratio requirements. As such, borrowers with bad credit or other financial challenges can get approved for financing.

Low Interest Rates

Another benefit of the VA loan program is the typical interest rate. Utah residents who take advantage of this form of financing commonly score interest rates that are 0.5 to 1 percent lower than the average, which saves thousands over the life of a loan.

Limits on Closing Costs

All mortgages come with closing costs, but VA borrowers don’t need as much cash on hand at closing. The VA limits the types of fees that homebuyers can be charged, and having less to pay during the transaction makes homeownership more affordable.

No Mortgage Insurance

With a conventional loan, a down payment of less than 20 percent means paying private mortgage insurance (PMI). FHA financing also features a form of mortgage insurance. VA loans don’t, and skipping that expense can save a borrower hundreds each month.

Flexible Refinancing Options

Utah homeowners with current VA loans find that refinancing is a breeze. These mortgages have more relaxed guidelines, and whether a borrower wants to lower their monthly costs or turn their home equity into cash, the VA has excellent options.

Are You Eligible for a VA Loan?

If you’re ready to become a Utah homeowner and want to explore your mortgage options, the friendly and knowledgeable team at Intercap Lending is here to help.

We’ve been serving first-time homebuyers and repeat borrowers in Salt Lake City, along the Wasatch Front and throughout the northern Utah area for decades, and our mortgage professionals have the expertise to find your ideal financing solution. And with Intercap Lending, the home loan process is both easy and convenient.

For more information on the VA home loan program – or to see if you might qualify – contact Intercap Lending in Orem, Utah, today.