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Flagship Financial and All the Benefits of a VA Loan

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Those who have served in the military do have certain benefits awarded to them they may only be vaguely aware of. Many veterans have likely heard of Veterans Affairs (VA) loans, but they might not be familiar with all their benefits. They might not be sure of how the loans work. Investigating the value of these loans is definitely advised to all those veterans who qualify.

What is a VA Loan?

VA loans are intended for a very specific purpose. These are mortgage loans backed by VA Department. Veterans or their surviving spouses can be eligible for the loans. Applicants do not apply directly to the VA. Instead, the applications are submitted to lending institutions such as Flagship Financial, which is a lender affiliated with the VA’s program.

The Value of Backing

A loan “backed” by the Department of Veterans Affairs means the lender won’t lose all its money if the borrower defaults. The VA is, in essence, co-signing for a portion of the loan. The amount may be up to 50%. So, if a home goes into foreclosure and $50,000 is owed, the VA may cover a maximum of $25,000 on the loan.

Now, no one wants to default on a home loan or enter into foreclosure. Protection from loss, however, is a solid benefit to have just in case a horrible scenario plays out and mortgage payments cannot be made. More likely, the main benefit is the borrower is less of a risk to the lender.

Reduction of Risk

Since the loan is partially backed and the risk is lower, a loan of this nature could be easier to approve. This is not to infer all loan applications are approved. Other factors weigh into the approval process. However, these loans are tailored to veterans meaning the application is going to be slightly different (and more beneficial) to those who served in the armed forces.

No Money Down

VA loans are issued without any money down, which is a massive plus for those who might not a lot of funds available to them. A down payment is frequently a stumbling block to those who otherwise would like to take out a loan. With a VA loan, that stumbling block is removed.

All About Access

If the benefits of a VA loan were to be summarized into one word, the one word would be “access”. Not everyone’s income level is high or financial background perfect enough to be approved for a traditional mortgage. With a VA loan, a host of impediments are removed from those whose access to funds was previously barred.