VA

Loans through the Veteran’s Administration enable more than 25.5 million eligible active-duty service members, veterans, and their families, as well as surviving spouses, to purchase a home with no money down. These loans were created to boost lending to military home-buyers to build a solid financial foundation due to frequent relocation and deployments.

All VA loans are offered by private lending institutions are fully backed by the government for loan amounts up to $417,000 and even more in some high-cost areas.

VA Loan Advantages

  • No money down – The VA home mortgage loan doesn’t require a down payment, as compared to a 10%-20% down payment with a Conventional loan.
  • No PMI – Private mortgage insurance (PMI) is not required on a VA loan. PMI is an added monthly expense of .2%-.9% required for conventional loans when the borrower puts less than 20% down.
  • Fewer restrictions – Qualification guidelines are less restrictive for VA loans, allowing higher debt-to-income ratios. Additionally, VA loans won’t be denied solely based on a low credit score. The program typically looks as the previous 12 months of credit history.
  • Refinances made easier – Borrowers can often refinance (without re-qualifying) to a lower rate within the VA loan program through the VA Streamline Refinance Loan.