The millennial generation is one of the most critical demographics regarding home buying. This group of young adults is already making a significant impact on the housing market, and their preferences are shaping lenders’ business. One thing that has become clear is that millennials love VA loans. In this blog post, we will explore some of the top reasons why this generation consider best companies for VA home loans over other mortgages
VA Loans Offer Flexible Credit Guidelines
One of the most appealing aspects of VA loans for millennial borrowers is the flexible credit guidelines. To qualify for a traditional mortgage, borrowers must have a credit score of at least 620. However, with a VA loan, borrowers can qualify with a credit score as low as 580. This makes homeownership more accessible for millennials who may not have the highest credit scores.
They Offer 100% Financing
Another reason that millennials love VA loans is that they offer 100% financing. This means that borrowers can finance the entire purchase price of their home without having to make a down payment. For many young adults, this is a significant selling point. With other types of mortgages, borrowers must often put down at least 20%. However, with a VA loan, borrowers can finance the entire purchase price of their home.
They Don’t Need Private Mortgage Insurance (PMI)
One of the most annoying expenses for homeowners is private mortgage insurance (PMI). This insurance policy protects the lender in case the borrower defaults on their loan. With a traditional mortgage, borrowers must pay PMI if they put down less than 20%. However, borrowers are not required to pay PMI with a VA loan. It can save borrowers hundreds of dollars each year.
The Loans Offer Competitive Interest Rates
Interest rates on VA loans are also very competitive. In general, VA loans have lower interest rates than traditional mortgages. It is because the government backs VA loans. This means that lenders are willing to offer more competitive rates to borrowers.
In addition, VA loans can be used for a variety of purposes. Borrowers can use VA loans to purchase a primary residence, a second home, or an investment property. It makes VA loans one of the most versatile types of mortgages available.
As you can see, there are many reasons why millennials love VA loans. VA loans offer many benefits to borrowers from the flexible credit guidelines to the competitive interest rates. If you’re a millennial borrower, be sure to check out VA loans as an option for financing your next home purchase.