Veterans are able to receive home loans backed by the government at a lower rate than the general public. As conventional loan rates begin to creep back up, VA loans get even better. Here are the top four benefits of a VA loan.
Payments Are Lower
No mortgage insurance and lower interest rates than conventional loans means lower overall payments. There is only a small funding fee that usually gets financed into the loan. Veterans with disabilities don’t have to pay the funding fee at all.
No Down Payment Required
The most defining benefit of a VA loan is that qualified buyers do not have to pay a down payment. This can save 1,000’s of dollars seeing as the average person puts about 20% down when they purchase a home. Making VA home loans great for first time buyers.
Relaxed Credit Standards and Flexible Requirements
Since VA loans were created to help get Veterans in to homes that otherwise wouldn’t be able to, they are a bit more lenient. The VA tends to be more forgiving when it comes to a borrower’s credit score or how soon a veteran can purchase after experiencing a bankruptcy, foreclosure or short sale.
Limits on Fees
The VA puts limits on what expenses the borrowers are allowed to pay, such as termite or pest inspections and closing costs.