VA Loan Benefits
The VA loan program offers veterans unique benefits
that usually makes it the best loan option.
100% Financing
Unlike traditional loans you can finance 100% plus
your va funding and other fees
Low credit score loan approval
You can have a low credit score and still get approved.
The largest factor considering credit is if you have
24 consecutive months of loan payments to your creditors.
Meaning you have not been 30 days or more late on
your auto, credit cards or any other loan that appears
on your credit report.
$0 down payments
Most loan products requires the buyer to put 10%
or more down. On a $200,000 loan that is $20,000.
Most veterans do not have the money for such a down
payment. So as part of your veterans benefits, the
Department of Veterans Affairs does not require a
down payment.
No private mortgage insurance
Buyers with conventional loans must buy insurance
on their mortgage if they do not put 20% or more as
a down payment. This protects the lender because the
owner does not have at least 20% equity in the home
to cover fees if the buyer defaults on the loan. The
cost of PMI can be about $40 per month for every $100,000
borrowed. For a $200,000 loan that is $80 added to
your mortgage payment which will significantly affect
the amount of loan you qualify for.
No prepayment penalties
Some mortgage loans have pre-payment penalties if
you make extra mortgage payments. The va loan does
not have any such fees. This allows you to make extra
payments as you can afford.
Limited buyer closing costs
When buying a home there are literally dozens of
fees that must be paid in connection with obtaining
a loan. The VA loan has strict guidance on the type
and amount of fees the buyer can pay. This added protection
for the veteran, that prevents the lender of charging
excessive or erroneous fees.
Assumable loan
VA Loans are assumable. This means that someone
can assume your loan with little effort or qualification.
However, if the person assuming the loan is not eligible
for a va loan, then your va loan entitlements remain
with the buyer and you cannot use them until they
are released through refinance or sale of the home.
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VA Loans
