VA Mortgage Benefits
The Department of Veterans Affairs (VA) is the agency that backs VA mortgages. Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans.
Other People Are Reading
-
Low Down Payment
-
VA loans have no required down payment. Most conventional loans require a down payment of 10 to 20 percent.
Lower Interest Rates
-
VA loans usually have interest rates that are between 0.5 percent and 1 percent lower than conventional loans.
-
No PMI
-
Private mortgage insurance (PMI) typically comes with a mortgage when you cannot make a 20 percent down payment. However, VA loans are exempt from this extra cost.
Credit Approval
-
There is no set credit score requirement for VA loans. The approval process focuses on debt-to-income ratios rather than past credit history.
Flexibility
-
VA loans can be either fixed rate mortgages (a fixed interest rate for the life of the loan) or adjustable rate mortgages (designed for low- to moderate-income families).
-
