No Down Payment + So Much More: The Advantages of a VA Home Loan
If youâre a qualifying military service member or military spouse, VA loans are one of the best mortgage options on the market. Why? Because VA home loans offer several perks that you wonât find with conventional loans, including zero-down-payment options, lower interest rates, and much more.
The list of benefits is substantial, and weâll break it all down here.
Zero-Down-Payment Options
Conventional loans typically require home buyers to produce a 5-20 percent down payment. FHA loans require a minimum down payment of 3.5 percent.Â
VA loans are appealing because they come with zero-down-payment options. Thus, qualified home buyers can finance their home without dropping a penny on a down payment.
Say Goodbye to Private Mortgage InsuranceÂ
Conventional lenders need added assurance that youâll âmake goodâ on your mortgage repayment. So unless you can produce a 20 percent down payment, youâll have to carry private mortgage insurance (PMI).Â
Unlike conventional loans, VA home loans do not require homeowners to purchase monthly mortgage insurance.
Competitive Interest Rates
Another perk is that VA loans offer some of the most competitive interest rates on the market. In fact, VA interest rates are generally lower than conventional rates. While not a huge difference, the difference can add up quickly and impact the total monthly costs.Â
More Lenient Credit Requirements
Conventional lenders generally require applicants to have a credit score of at least 620. However, VA loans do not have a minimum credit score requirement and can vary. In general, applicants must have a credit score of at least 580. That credit score leniency makes VA loans appealing for borrowers with less than perfect credit.Â
Contact Us to Get Started on Your VA Loan
Are you ready to secure some of the best VA loan rates with National Home Loans? Our loan experts are ready to help you! Contact us to request rates today and donât forget to ask about our Homes for HeroesÂź program.
