1. No Down Payment

VA loan doesn’t require a down payment because the VA guarantees a portion of the loan, which protects the lender if the borrower defaults. This guaranty means the lender can offer more favorable terms, including no down payment.

2. No PMI

PMI which stands for Private Mortgage Insurance is not required on a VA loan! Due to the entitlement, which usually amounts to more than 20 percent of the home’s value, you don’t need to pay PMI on a VA loan.

3. Easier to Qualify

If you’re eligible, VA loans are fairly easy to qualify for, since there’s no down payment required, no minimum credit scores, and no maximum limit on how much you can borrow relative to income. VA loans are a great choice when purchasing a home!

4. Competitive Interest Rates

You might think that a zero down payment comes with higher rates and costs compared to other types of home loans but many borrowers are amazed to learn that VA loan rates are very competitive―often even lower than those of prime conventional loans. And fees are limited to what the VA will allow.

5. VA IRRRL Options to Refinance

If you currently have a VA loan and want to take advantage of lower interest rates to lower your monthly mortgage payment, the Interest Rate Reduction Refinance Loan (IRRRL) is a great loan option to consider.

 In most cases, they require little paperwork since borrowers are moving from one VA product to another. And bonus, with an IRRRL you could have little-to-no out-of-pocket costs.

But if you do find yourself having to pay closing costs, one nice thing about this loan is you can actually roll those payments into your monthly mortgage, still keeping your cash in your pocket!

Final Thoughts

If you are a Veteran looking to purchase a VA loan is a great way to go! With lots of incentives this loan option makes it easy to go with! If you have any questions about VA loans or are in the market to refinance give us a call at 888-686-7701 or head over and fill out our online quote form!