Pros and Cons of Bad Credit VA Home Loans
Are you contemplating buying a home of your own on bad credit VA home loan? Do you have mixed feelings on whether or not getting a loan is an investment that is worth getting into?
Sure enough buying a home is a solid investment and one of the best investments you can make, especially considering the fact that house prices keep going up. Choosing to buy a home using a bad credit VA Home loan means that you will pay less tax and you may end up saving more money. Essentially, owning a home costs less compared to renting one. In addition, considering that the house you bought is now yours, you could sell it whenever or not you wish and better still upgrade into a larger home.
Moreover, benefits of buying a home with a VA loan is beneficial; for instance, when you own a home you have unlimited freedom to turn it into what you like. Maybe it’s painting a different color, changing the carpet and so much more. This freedom is not available when you are living in a rented home. In some areas, the interest rates are often low, even at times lower than your rent. When renting a home you enjoy peace of mind, peace of mind from unnecessary surprises meant to degrade you and alter your financial freedom.
Owning a house gives you a sense of security and stability, remember also, you can enjoy having pets without restriction from the property owner as to how many you can have. In buying a home too, you do not have to settle for anything less than the house of your dreams.
Note that the VA home loans are a great deal for those yearning to own a home. But with low credit scores, VA loans have pros and cons.
These loans are meant for primary residents; they cannot be ideal for buying a second home or an investment property. This is because reusing a VA loan is very expensive after the first time. Compared to conventional loans, VA loans come with a mandatory funding fee and it’s only exempted for borrowers with service connected disabilities. The mandatory VA fee goes into a loan program to help run the VA loan for generations to come.
For a fact, many veterans have faced serious challenges when hunting for homes even with VA Loans. This is because most sellers prefer cash and conventional loans as opposed to VA loans. The main reason is that VA loans lack down payment fees, which is in Conventional loans. Sellers and real estate agents also have a belief that VA mortgages take longer to close, are prone to stingy appraisals, though this is not true.