In 1944, the United States Department of Veteran’s Affairs crafted a program that would help the country’s bravest conquer a domestic endeavor: Homeownership. The program was designed as a “thank you” to service members that would reduce the hurdles to home buying brought on by the financial sacrifices made while serving the country.
But what few veterans know is that the program never expired.
In fact, today’s record-low interest rates make taking advantage of this program more lucrative than ever. Among the most valuable of these are mortgage benefits which, when properly accessed, have a staggering average lifetime value of $42K .* At Lending Tree, our experts strive to find the best rates possible for customers – and that includes keeping an eye on initiatives like this one that could earn more benefits for veterans. Learn more about how Lending Tree can help you reach your financial goals by visiting LendingTree.com.
How veterans can benefit
One major benefit of the program is the ability to borrow from your own home. If participants fall on hard times, the equity built up in their home can act as an emergency savings account. Up to 100% of the value of your home can be borrowed – a loan from your very own investment. When you add up the value of the PMI exemption and exclusive interest rate discount, the potential savings are nothing to sneeze at. The annual payments on a typical $250,000 loan could be $3,100 lower under a VA loan than a conventional home loan.*
Typically, any homeowner with less than 20% equity in their home is required by their lender to purchase additional mortgage insurance (PMI) to cover the risk of a potential foreclosure. Not vets. Because VA loans are backed by the full faith and credit of the United States Government, no additional PMI is required. That exemption can save veterans hundreds of dollars per month alone.
Check your eligibility
Think you might qualify? This special program requires a minimum service of between 90 days and two years for most veterans. To find out if you’re eligible, visit LendingTree.com.
*Average value calculated on a $250,000 mortgage, and come from an average rate reduction of .5% (worth $840 annually), and the elimination of PMI (worth $2,292 annually until equity threshold.