Why Choose a VA Loan?
The VA Home Loan comes with substantial benefits created to aid those eligible who might otherwise be unable to obtain financing to purchase a home.
The VA Home Loan does not require a down payment in most instances and does not require private mortgage insurance. VA loans carry competitive interest rates and terms, and also allow qualified borrowers to purchase a home with little to no money out of pocket at closing.
Since their inception in 1944 VA loans have become increasingly popular due to the benefits they offer:
- No Down Payment – It can be difficult for anyone to save money for a down payment, let alone service members who are constantly on the move. VA Home Loan allows qualified borrowers to borrow 100%of the home’s value without putting any money down in most instances.
VA Down Payment Savings vs. Conventional Options
Are you ready to see how much you can save? contact VA the Fairway.
- No Private Mortgage Insurance – Unless you put at least 20% down, most conventional loans require that borrowers pay private mortgage insurance (PMI). Private mortgage insurance protects the lender in case a borrower defaults on their mortgage. This insurance is paid through a monthly premium being added to the loan’s monthly mortgage payment.
With a VA Home Loan, there is no PMI. The federal government backs all VA Home Loans and guarantees the loan to the lender in case of a borrower default.
Monthly PMI Savings*
|$150,000||Saves $100.00 per month|
|$200,000||Saves $133.33 per month|
|$250,000||Saves $166.67 per month|
|$300,000||Saves $200.00 per month|
|$350,000||Saves $233.33 per month|
|$400,000||Saves $266.67 per month|
|$450,000||Saves $300.00 per month|
To get rid of PMI you may have on a current mortgage or avoid it on a purchase - Start your VA Home Loan quote online.
*Based on estimated PMI of .80% of the loan amount on a 5% down Conventional Loan
Easier to Qualify
Through less stringent underwriting guidelines, the VA Home Loan Program allows homeownership opportunities to service members, who couldn't otherwise qualify for conventional financing.
Lower monthly mortgage payments are achieved by combining competitive interest rates with the advantage of having no private mortgage insurance added to the mortgage payment.
The VA Home Loan Program is extremely helpful for the First-Time Home Buyer because it offers less stringent credit standards combined with the no down payment benefit.