VA Loan vs. Military Heroes Loan: Which Option is Right for Me?
Robins Financial Credit Union is dedicated to our mission to be Member Focused, Financial Partners, Community Proud. We empower our members with the financial knowledge and resources they need to make informed decisions and achieve their financial goals.
Similar to a VA loan, we offer our Military Heroes Mortgage loan to the brave men and women who protect our lives and freedoms each day. While both products have similarities, there are some key distinctions that may make our Military Heroes Mortgage loan the better option for you. Let’s take a deeper look at both products so you can determine which option best fits your needs.
What is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA) and issued by a private lender, such as your credit union. The VA assumes some of the risk, meaning if a VA borrower fails to make payments on their loan and defaults, the VA will repay the lender a portion of its losses. This assurance reduces the risk for lenders, which makes it possible for them to offer more favorable terms.
What is a Military Heroes Loan?
Our Military Heroes Mortgage loan is an adjustable rate mortgage that offers special discounts and other benefits as a way of giving back to our active duty military members. Eligible members include those currently serving in the Armed Forces, Reserves and National Guard.
How are these products alike?
Both the VA loan and our Military Heroes Mortgage loan are the perfect products for active duty military personnel needing financing for their home. These products each hold many benefits that allow our members to save more for future investments or to add more money to their savings. Some of these benefits include:
- No down payment
- Up to 100% financing
- Little to no fees
How are these products different?
While these products are both great options for active duty military members seeking financing for their home, there are some key differences that can help determine which product is best for your situation.
- Funding Fee – While you won’t pay for mortgage insurance with a VA loan, you will be responsible for paying a funding fee at closing. Although the fee can be financed in your loan, it can increase the total amount you owe.
- Property Restrictions – VA loans typically limit the type of property you can buy and how you can use it. Manufactured homes are also subject to more scrutiny, including a structural engineering examination.
- Use of VA Benefits – One of the key advantages of our Military Heroes Mortgage loan is that you can conserve your VA benefits for later use on other investments unlike the VA loan which taps into those benefits in order to secure your home.
Why Choose Robins Financial for Your Mortgage Loan?
As a credit union, we’re a member-owned financial cooperative that exists solely to serve our membership. Being a not-for-profit institution allows us to give back to our members through lower rates on loans and high returns on deposits, and as your trusted financial partner, we will walk with you through every step of the home-buying process.
Are you or a family member active duty military ready to buy your next home? Let us help you! Visit our website for more information on our Hometown and Military Heroes Mortgage loans. You can apply online or make an appointment to speak with one of our Mortgage Loan Originators.
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