The Veteran Affairs have come up with really good loan programs for veterans and military service members. From purchase to refinance loans, the VA has a program for every veteran’s homeownership needs.
The VA home loan boasts many amazing benefits. You may take the loan with zero down payment. It has relatively lower interest compared to other loans. The VA home loans do not require the borrower to pay for any monthly mortgage insurance premium.
Just like other mortgage loans, there are also tax benefits associated with VA loans.
Interest and Origination Fee Write-Offs
Military veterans and service members may choose to write off the interest paid towards the loan in each tax year. This
write off can help veterans save more from their annual federal taxes. Origination fees can also be deducted from your taxes. These fees can be paid by the buyer or the seller (if the buyer negotiates to have the seller pay it) Regardless of who pays, the buyer may choose to write it off.
Our lenders can answer your questions about VA loans here.
VA Funding Fee Write-Offs
The VA funding fee can also be written off. It can be fully deductible on the year it was paid since this funding fee is considered as a form of mortgage insurance. This is true when the loan was used to
purchase a personal residence. So long as the funding fee is associated with a home acquisition debt, then it can be deducted from your federal taxes.
Tax deductions can help decrease your taxable income. Why is it important to know about them? Tax write off help lower the tax you owe to the federal government. This means added savings on your part. To be able to maximize this benefit, talk to a tax professional or to your lender. A good understanding about this will help you save more money.
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