Six Huge VA Loan Advantages

Dated: 03/07/2018

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VA loans. Available to millions of veterans, spouses, service personnel and more, this home loan offers tons of benefits that other mortgage can’t meet.

Home buyers who are eligible might not know much about VA loans, and many don’t even know the program exists.

 Here are some of the biggest benefits of VA home loan:

No down payment

Loans, like FHA or conventional, require a down payment of at least 3.5%, and some may require even more down. 

With a VA loan, you can finance up to 100% of the total purchase price.

No mortgage insurance

Most loan programs require you to pay a down payment of 20% monthly mortgage insurance. This adds to the total cost of the home.

The VA takes care of this by backing the home buyer, and this means no monthly mortgage insurance payments. 

Lower credit requirements

The VA doesn’t explicitly require a minimum credit score, meaning anyone can be eligible. However, lenders will want to see credit scores of 620 or higher before they approve a VA loan.

 In January 2018, the average FICO score on closed VA loans was over 40 points lower than conventional loans.

Lower than average mortgage rates

 In January 2018, VA home loans closed with an average mortgage rate 26 basis points (0.26%) lower than the next closest (FHA loans).

No prepayment penalties

 Want to get rid of your monthly mortgage payments, you can pay off your VA mortgage without any type of financial penalty.

Lifetime eligibility

 Many home buyers who are VA eligible buy more than one home through the program.

Eligible for a VA loan? You are also eligible for VA refinancing, just another loan program saving veterans and active military members money.

Is VA the best mortgage option?

For home buyers that want to make a low down payment , VA loans beat out FHA loans.

Before deciding for or against a VA loan, find out more about the VA program.

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STORY FORMED REALTY LLC | Matthew Bayley Broker Kelly Right Real Estate

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