What is a VA Loan?
The origins of the VA home loan program—a part of what is officially known as the Servicemen’s Readjustment Act, or “G.I.” Bill—was written into law to aid WWII veterans. After it was enacted into law, the Bill allocated funds that established hospitals, granted stipends to cover college tuition, and also made low-interest home mortgages more available to servicemen and servicewomen who wanted to buy, build, or refinance a home. A “VA Loan,” as they’re most commonly known, is available to nearly every service member and veteran, and if you qualify for one, the loans can save you tens of thousands of dollars. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
Why Choose Utah?
If you’re a military veteran looking to make a life for yourself after you’ve been released from your active duty, then you can hardly do better than making your home in the state of Utah. Aside from the benefits that all veterans enjoy on a federal level, Utah also offers some incentives that are wholly unique. If you’re looking to become a homeowner, the Utah state legislature recently passed a bill intended to address the state’s affordable housing projects, investing millions of dollars to support housing developers to fund their construction. These state-of-the-art homes will soon be on the market, and as a veteran, you might be just as motivated in investing in a property that will give you easy access to the gateways of nature’s most diverse beauties. After years of service, you’ll want to inundate yourself in nature, and spend just as many years worth in exploration across Utah’s vast landscapes, ranging in topography from high altitude mountain ranges to alpine forests, to arid and serene desert environments. Apart from that, Utah also offers veterans free admission to state parks—and Hunting and Fishing License privileges—so that you can best enjoy the state’s world-renowned outdoor wonders.
What are some common misconceptions about VA loans?
Here at CityWide, we’d be honored to serve you in some small way—especially after all the service that you’ve selflessly given our country. In the first place, we’d like to dispel a few common misconceptions about VA Loans:
1. “VA Loans feature high note rates.”
VA Loans actually offer consistently lower note rates over 30 years than both conventional and FHA loans. Consistently low note rates mean consistent savings for VA loan borrowers. Without a down payment on VA loans, a low-interest rate means homes are even more affordable to veterans.
2. “It just takes too long to close a VA loan.”
VA loans take an average of 40 days to close, while conventional loans take 39 days to close. When you’re looking to get a mortgage, don’t let a fear of slow closings keep you from receiving your well-earned VA benefits.
3. “VA Loans rarely ever close.”
This is easily the most insidious of the myths. VA loans are actually closing more frequently than conventional or FHA loans by a wide margin.
Remember that not all VA Loans are made equal—as you select your lender to help, note that each lender will have their own set of different interest rates and fees. You’ll need to shop around for the loam that’s best for you. Call our Citywide Home Loan experts for information today.