The VA loan is one of the most powerful mortgage options on the market. With its significant financial advantages, it allows veterans, active military members, and eligible surviving spouses to fulfill their dream of homeownership. To see how powerful a VA loan can be, let’s review some of the benefits it can provide.
- Zero Down Payment - Buying a house with no down payment is probably the biggest benefit of a VA loan. This means you'll need less money up front, and you can use your savings for renovating or buying furniture.
- No Mortgage Insurance - A conventional loan's PMI can cost up to 1% of the loan amount each year. That means that if your loan amount is $250k, you'll have to pay an extra $2,500 annually! With a VA loan, even if you're not able to put 20% down, you won't need to pay for any mortgage insurance.
- Lower Interest Rates - VA loans are backed by the government. That means they have a lower risk for the lenders, allowing them to give lower interest rates to eligible borrowers.
- Lower Credit Requirements - A conventional loan requires a minimum credit score of 620. But with a VA loan, you can qualify with as low as 580.
- The Benefit Never Expires - VA loan is not a one-time benefit. Even if you're a veteran who used it years ago, you would still be eligible for the program now. In other words, you are entitled to use a VA loan again and again.