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4 Ways VA Loans Las Vegas Can Help Student Veterans


As a veteran shifting from active military duty into life as an ordinary citizen, you might be considering pursuing an educational program as a means to advance your dream career. You’re not alone in this venture. Indeed, institutions of higher learning across the U.S. have received over two million veterans from 2009 to date. And like other ordinary students, you may need financial assistance to pay for tuition fees and other student-related expenses. (1)

Typical traits of veteran students

Your years of service in the military will give you an added advantage in terms of the financing options you can access. Additionally, your social situation demands more attention compared to ordinary students. Consider these statistics:

  • 85% of student veterans are beyond the traditional age of college students
  • 47% of student veterans are married and have kids
  • 75% of student veterans attend school full time (2)

Fortunately, the U.S. Department of Veteran Affairs has made it possible for schooling veterans to obtain loans whose terms are a bit more lenient than the usual money products out there. These are referred to as VA loans.

What are VA loans?

VA loans are financial lendings offered to retired, active duty, honorably discharged veterans, or the spouses of deceased military persons. They’re issued by private lenders, such as this VA Loans Las Vegas lender, but guaranteed by the U.S. Department of Veteran Affairs (VA). That makes VA loans unique in the following ways:

  • They don’t require you to buy Private Mortgage Insurance (PMI).
  • They have one of the lowest average fixed interest rates in the market.
  • They’re easier to qualify for.
  • There are no down payment requirements for home purchase loans.
  • They don’t have a minimum credit score requirement. However, take note that the lender you choose may set a credit score rating for qualification.
  • There are no loan limits. For more information on this, you can watch this video:

 

 

Uses of VA Loans

Here’s how you can benefit from VA loans as a student veteran.

1. Purchase a home

Studying full-time may strain you financially. For instance, you may not have enough money to rent a decent home near your campus to house you and your family. For this reason, you’d want to apply for a VA loan to buy a home at a competitive interest rate. If you stay in Clark County, Nevada, this VA Home Loans Las Vegas lender may be worth your consideration.

You can use the money to purchase a home, condominium, or multi-family home. But if you’re not wired for that, you can still buy land and build a house with a VA loan. Being a homeowner and not having to pay rent gives you the much-needed peace of mind as you pursue your studies.

2. Finance your education with cash-out refinance

If you already have a mortgage, you can take a cash-out refinance VA loan to replace your existing loan with a new one that comes with a larger amount than what you currently owe. You can use the extra cash you get to pay for tuition fees or cover education-related expenses if you get a veteran scholarship.

The new mortgage also comes with more favorable payment terms, such as:

  • Lengthier repayment period
  • Lower monthly premiums
  • Lower interest rate

Thus, you’ll get off your shoulders a considerable financial burden and be able to study comfortably.

3. Get loan forgiveness

The Department of Veteran Affairs has been running the Education Debt Reduction Program (EDRP) for quite some time now. It’s meant to encourage healthcare professionals serving America’s veterans to pursue higher education, allowing them to be in a position to provide top-notch care. If you’re one of these, you may receive a student loan reimbursement of up to USD$200,000 over five years. You can use this cash to help you pay tuition fees and cover other educational and living expenses. (4)

Also, note that VA EDPR reimbursements are tax-free, which means you’ll have more money in your pocket. It also helps you repay your existing student loans faster.

4. Reduce interest rates on current VA loans

If you have an existing VA loan, you can take the Interest Rate Reduction Refinance Loan (IRRRL) so you can obtain a lower interest rate and shorten your loan term. IRRRLs are also referred to as VA streamline refinance loans, given the straightforward process of getting them. You don’t need a minimum credit score, a new Certificate of Eligibility, or a minimum income requirement to qualify. This saves you a significant amount of money in the long run, and that’s one critical objective for student veterans. (5)

Conclusion

Taking a VA loan as a student veteran helps you pursue a course of your liking in any institution of higher learning. This way, you increase your career opportunities, develop new skills, improve your quality of life, and learn to apply military skills in civilian life. So, don’t hesitate to start searching for a reliable VA loan lender around your area of residence.

References

  1. “Student Veterans: A Valuable Asset to Higher Education”, Source: https://ivmf.syracuse.edu/student-veterans-a-valuable-asset-to-higher-education/ 
  2. “Learn About Student Veterans”, Source: https://www.mentalhealth.va.gov/student-veteran/learn-about-student-veterans.asp
  3. “VA Loan”, Source: https://www.investopedia.com/terms/v/valoan.asp#:~:text=VA%20loans%20are%20available%20to%20active%20and%20veteran,no%20prepayment%20penalties.%20How%20a%20VA%20Loan%20Works
  4. “How VA supports ongoing education with debt relief”, Source: https://blogs.va.gov/VAntage/51385/va-supports-ongoing-education-debt-relief/
  5. “Interest Rate Reduction Refinance Loan (IRRRL)”, Source: https://www.investopedia.com/terms/i/interest-rate-reduction-refinance-loan-irrrl.asp