While both VA and conventional mortgages have their pros and cons, a VA loan can be a better option for eligible borrowers for a variety of reasons. First, VA loans often offer more flexible credit requirements and do not require a down payment, potentially making it easier for some borrowers to qualify. Additionally, VA loans typically have lower interest rates than conventional loans, which can save borrowers money over time. VA loans also do not require private mortgage insurance (PMI), which can help further reduce monthly payments. Finally, VA loans provide additional benefits to eligible veterans and service members, such as funding fees that may be waived or reduced.

Other benefits include:
1. Zero Percent Down: With most other loan programs, you’re required to pay a percentage of the home’s purchase price up front in order to obtain a loan. This can range from 3% to 20%. VA loans require zero down.
2. No Mortgage Insurances: Under other loan programs, when you purchase a home with less than 20% down, you’re typically required to pay monthly mortgage insurance. With a VA loan there is no mortgage insurance. This can add a significant cost to your monthly mortgage payment. VA loans don’t require mortgage insurance ever!
3. Better (Competitive) Interest Rates: Because the VA provides a guarantee to the lender, it allows lenders to provide more favorable loan terms and competitive interest rates. VA loans can provide a lower monthly payment and a more affordable loan option.

In addition to the above benefits, VA loans also limit the amount you have to pay on closing costs, you also don’t have any penalties for paying off your loan early, and have no limit to how many times you can take out a VA loan.


by Santiago Carrillo



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