VA Loan Benefits
​That's right. VA loans are a great option for veterans, active-duty service members, and surviving spouses who are looking to buy a home. They offer a number of benefits that can make homeownership more affordable, including:
No Down Payment
Required
VA loans do not require a down payment, which means that you can borrow 100% of the purchase price of the home. This can be a great benefit for veterans and active-duty service members who may not have a lot of money saved for a down payment.
Limited Closing Costs
It's important to note that even though VA loans do not require a down payment, you may still have to pay closing costs. Closing costs are the fees that are associated with the purchase of a home, such as appraisal fees, title insurance fees, and lender fees. These costs can vary depending the purchase price of the home.
No Loan Limits
Starting in 2020, the VA no longer sets loan limits for veterans and active duty service members who have full entitlement. This means that you can borrow up to the maximum conforming loan limit set by the Federal Housing Finance Agency (FHFA), regardless of your down payment.
Competitive Low
Interest Rates
VA loans are generally considered to have competitive interest rates. The interest rate you get on a VA loan will depend on a number of factors, including your credit score, your debt-to-income ratio, and the current market conditions.
No Need for Private Insurance
VA loans do not require PMI, even if you make a down payment of less than 20%. This is because the VA guarantees the lender's loan, so the lender does not need the extra protection of PMI. You can build equity in your home more quickly and save money on your monthly mortgage payments. Also no upfront PMI premium required.
Foreclosure Avoidance
VA loans are also backed by the U.S. government, which means that if you default on your loan, the VA will guarantee the lender's losses up to a certain amount. This makes VA loans a very safe investment for lenders, which is why they are often able to offer more competitive terms than other types of mortgages.
Words from Our Leader
Bruno Linares, Mortgage Lender
"One of the best things about VA loans is that they don't require a down payment. That's a huge savings, and it's allows to put more money into my home. VA loans also have competitive interest rates and limited closing costs.