Benefits of a VA Loan

With a VA Loan, you'll enjoy significant benefits that make home buying less painful and more gainful
VA Loans Compared to Other Loans

There are three primary types of loans typically used for buying a home: VA Loans, Conventional Loans, and FHA Loans. Each loan type has its own list of pros and cons, and understanding the options and attributes of each is essential to find the right fit. A VA Loan is usually chosen by Veterans and service members because of its huge list of advantages.

Here’s a quick look at how VA loans compare to other loan types, all government-backed:

Which one is right for you?

Pros of VA Loans

There are some major benefits of a VA home loan for Veterans, active military, and surviving spouses. Lorem ipsum dolor sit amet. (Keep in mind that not all lenders participate in the VA home loan program.)

No Down Payment

You have the ability to buy a home with ZERO down payment. This is a huge advantage of a VA Loan. Most conventional loans will require at least 3% of the loan or more, which often takes years to save. And you know what that means... you could lose the home of your dreams.

Lower Interest Rates

VA loans usually have the lowest interest rates on the market, which translates to you getting a larger loan or more savings in your pocket. Either way, more wallet power!

Contact me for the latest interest rates (because they change often).

Limited Closing Costs & Fees

The VA loan program also limits the closing costs you may be charged and gives you the right to prepay your mortgage without a penalty. The closing costs are usually paid by the seller, lender, or other party.

No Private Mortgage Insurance (PMI) requirement

Many states offer resources to Veterans, including property tax reductions to certain Veterans. With conventional loans, folks who can't come up with 20% down typically get stuck with the cost of private mortgage insurance (PMI), which is an added cost that reduces their options for homes in their budget. With VA Loans, you get to keep those PMI dollars, which means you may be able to afford that home you've been eyeing in the perfect neighborhood for you.

Flexible Credit Requirements

Need to rewrite - taken from Veterans United. -- VA loans were created to expand access to homeownership, and one of the ways they're still fulfilling that mission today is through more flexible and forgiving credit underwriting requirements.Credit score minimums vary by lender, but VA loans often have lower score requirements than other loan types. At Veterans United, we typically look for a minimum FICO score of 620. VA loans don't have a hard cutoff for debt-to-income ratio, and they typically have shorter waiting periods following negative credit events like bankruptcy or foreclosure.

No Pre-Payment or Pay-Off Penalties

Prepayment penalties became a thing of the past with the passage of Dodd Frank Legislation in 2010.

No Loan Limits

If you have your full entitlement available, you can buy as much house as you darn well please with $0 down, as long as you qualify for the monthly payment. If you have entitlement wrapped up in another property, we can pull your COE and discuss how to maximize your remaining entitlement.

Offered Only to U.S. Veterans

Only available to active U.S. service members, veterans, and surviving spouses.

Multiple Forms of Accepted Income Allowed

Receiving VA disability comp? That's qualifying income! W2, self employment, BAH, BAS... all of it can be used, and some of it is even grossed up for qualifying purposes.

VA Appraisal Conducted

There is no additional inspections required, other than termite in some areas, with VA loans. A VA registered appraiser will come to your property to ascertain value and determine if there are any major safety issues that would need to be corrected.

State Resources

Many states offer resources to veterans, including property tax reductions to certain Veterans. VA Loan Nerd researches each state during the process to help vets figure out your available resources.

Cons of VA Loans

Let's be real... there's always a down side. But this one isn't too bad!

Most borrowers are required to pay a VA loan funding fee (currently between 0.5% and 3.3% of the amount of the loan), depending on type of refinance or subsequent purchase and down payment amounts. But some veterans are exempt. Contact me and we'll talk through if you're exempt or not.

Get in Touch

Getting a loan doesn't have to be confusing or overwhelming. VA Loan Nerd is here to answer your questions and guide you through the entire process.
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