If you’re an American veteran looking to buy a home, there’s a special loan with your name on it. VA loans were created by the Department of Veteran Affairs in 1944 to help veterans pay off their mortgages faster. These loans offer many benefits, including lower interest rates and greater flexibility for veterans with lower credit scores. Indeed, thanks in part to these loans, 79 percent of US veterans own their houses compared with 63 percent of the civilian population.
To see if you may qualify for a VA loan, check the details of the eligibility requirements on the U.S. Department of Veterans Affairs website. You can find additional loans for Native American veterans, veterans with disabilities and even veterans with existing loans.
Here are the top four reasons why you should consider getting your VA loan from a credit union.
1. Not-For-Profit Organizations
Unlike traditional banks, credit unions are not-for-profit organizations. While credit unions must make enough profit to cover operational expenses, any profit made after this is returned back to our members in the form of dividends, lower loan rates and fewer fees. Consequently, if you receive your VA loan from a credit union, it is unlikely that you will find hidden fees, unexpected loopholes or surprise rate spikes.
- The Best Rates in Town
When it comes to loans, many reputable sources report that interest rates are lower at credit unions. Why? As not-for-profit organizations, credit unions are formed to serve their members. This means they reinvest profits back into programs, and members benefit in the form of excellent rates. Their main objective is serving and prioritizing their clients’ needs.
- Fewer Fees
You’ll also encounter fewer fees at credit unions than traditional banks. This means you will pay less for monthly service fees, which can add up quickly. If you’re a VA loan holder who chooses to use a credit union for other banking services, you’ll discover that most credit unions don’t charge ATM fees or other add-on costs.
- The Chance to Be a Co-Op Member
By joining a credit union, you become one of the credit union’s owners. In other words, you’ll be a shareholder in the co-op, rather than just another customer. Within this role, you have special privileges, including being able to vote for the board of directors. This “members first” attitude is a major benefit for many VA loan seekers.
- Friendly, Knowledgeable Service
Credit unions have earned a well-deserved reputation for being friendly and hospitable places to bank. Because credit unions are usually smaller and local, they forge ties with the community and care about each of their clients on a personal level. Their staff will work alongside you to determine the best ways to meet your banking needs, even if you have poor credit or other hurdles to overcome.