What are the Top VA Loan Advantages?
The VA Loan program comes with a number of advantages that set it apart from any other loan type.
VA Applicants can Qualify with Lower Credit Scores
Some lenders today offer VA loans for people with credit scores as low as 580. VA loans also adhere to less stringent debt-to-income requirements, which means applicants can qualify for more house with less income.
No Down Payment Required - That’s Right $0 Down Payment
By far the most significant advantage is the ability to buy without making a down payment. Under the program, eligible veterans and active military can borrow up to $417,000, and sometimes more according to local VA loan limits. VA Loans never require a down payment, and approximately 90% of VA borrowers do not make one at all. Most people who finance home purchases through traditional loans said saving up the down payment was the most difficult part of the entire process. Military home buyers skip that concern almost completely.
No Mortgage Insurance/PMI Payment
The bigger monthly savings, however, may come from the fact that VA borrowers pay no mortgage insurance. This expense is typically required on any other loan type when the applicant puts down less than 20%. But VA loans eliminate this cost, which can total hundreds of dollars per month.
Applicants also Enjoy Lower VA Loan Rates
According to a recent survey by loan software company Ellie Mae, veterans enjoyed rates that were 0.28% lower than rates for conventional loans. This is a difference of about $17 per month, per $100,000 borrowed.
How VA Loans Benefit Veterans
No Down Payments and No PMI
Most other major loan programs including Federal Housing Administration (FHA) and conventional loans, require down payments. FHA requires at 3.5-20% and conventional loans required 3-20%. In addition, these loans require mortgage insurance. This can add thousands of dollars in costs over the life of the loan. In fact, FHA mortgage insurance is due for the entire 30-year loan term.
Protection Against Default and Foreclosure
VA loan holders also enjoy extra protections that have resulted in lower foreclosure rates for veterans. The VA actively helps keep borrowers from defaulting on their loans. It will look for a pattern of late or missing payments and contact borrowers and lenders to work to avoid foreclosure.
One of the most important of these benefits is the ability to buy a home with 100% financing thanks to the VA Loan program. America's military service veterans are everywhere, tens of millions strong. They look no different from anyone else. But in one important way they are very different. That is through access to the benefits extended to them by a grateful nation via the Department of Veterans Affairs.
What Are Today’s VA Rates?
VA Loan Rates are Extremely Low
VA loan rates are extremely low, and are spurring today’s veteran to consider becoming a homeowner. Get a rate quote for your VA home loan, and see how much you can afford. No social security number is required to start, and quotes can be completed in minutes.
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