At Community Lending Group, we offer our loan services to a variety of qualified borrowers. For US veterans and military families, one of our very best loan programs features VA loans.

These loans are reserved only for veterans or certain active military service members, and they contain several benefits that you may not find in a more conventional loan program. Here are some of these primary benefits for veterans and their families.

Interest Rates

The basic mortgage rates you’ll pay are a vital consideration in any mortgage situation, and they’re a primary benefit of VA loans. These loans are backed by the federal government, which lowers risk for lenders in a major way – and brings the savings to you. Mortgage rates are often up to 1 percent lower than corresponding traditional loans using the VA loan system, meaning that over the life of a 15- or 30-year loan, the savings for veterans and their families can reach the five figure amounts easily.

Down Payment

In a typical loan situation, lenders expect anywhere from a 10 to 20 percent down payment on the total amount. Most VA loans, though, require no such down payment – again, this is because of federal government protection that lowers risk of default for lenders.

Insurance Premiums

If you’re unable to make this down payment in most traditional situations, lenders will ding you with insurance premiums. These are paid for by you, the borrower, but they benefit the lender in the case of a default situation. In a sense, insurance premiums function as a down payment, but paid over the life of a loan rather than up front.

With VA loans, though, this isn’t an issue for the same reasons as the two areas above. The loans are protected, and no insurance or down payment is required.

Transfer Between Spouses

Spousal transfer allows veterans or active service members to transfer all their loan benefits on to a significant other if they pass, regardless of whether this was in the line of duty. It can often be very difficult for the spouses of service members to manage after losing a husband or wife, but from a financial standpoint, this transfer can make thigs a lot easier.

To learn more about VA loans or any of our other mortgage programs, speak to the brokers at Community Lending Group today.