The VA Home Loan has many benefits that aren’t available through other types of financing. As a VA Loan officer, I have helped thousands of military families take advantage of these unique benefits.
No Down Payment Required
The benefit that most people note is that there is no down payment required. So even if you don’t have 10%, 20% or any percent down for your loan, you can still qualify for a VA loan when you might not be able to qualify for a conventional loan. This also means that you could afford a larger home.
It’s Easier to Qualify
Research shows that because of the stricter qualification standards, more than 80% of veterans and active-duty military members could not have qualified for a conventional loan. This is another reason why a VA Home Loan helps so many eligible people. And because the VA guarantees the loan (meaning that the VA promises to repay a portion of the loan if a borrower defaults), lenders are more likely to approve higher-risk borrowers.
New VA Funding Fee
If you have zero disability the funding fee is 2.15 on a home purchase. If you have 10% or more disability, the funding fee is waived.
To Sum it All Up
For a refinance or a new home purchase, a VA Loan offers many advantages over a conventional loan. The following are more, but not all, benefits the VA loan has to offer specifically to veterans and active-duty military.
- Lower rates than a conventional loan
- You can get 100% financing of the purchase price
- Seller can pay up to 4% in closing costs
- Easier qualifying criteria compared to a conventional loan
- Poor credit will not automatically disqualify you
- No prepayment penalty