About Lending to the Military
The primary loan that most military veterans or active duty personnel use is the VA loan, or Veteran's Administration loan. Discover why a VA loan requires no down payment with help from a financial specialist in this free video on loans and money management.
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Hi, this is Matt McKillen with Innovative Financial Group. The question posed to me today is, what type of loan programs are available to the military? The primary loan that most vets use, or active duty military people is called a VA loan, and it's a Veteran's Administration loan. It's very popular. The reason for that is you can purchase a property and finance up to a hundred percent of the sales price. It requires no down payment, whereas FHA, for example, requires a three and a half percent down payment. The other great thing about the VA home loan is that, when you're financing that large of a amount, a hundred percent, there's no private mortgage insurance on the loan. Which is a savings on, let's say, a typical hundred thousand dollar purchase price, it's probably a savings about forty or fifty dollars a month in payment. Plus, through the VA home loan program, the seller must pay all the closing costs in conjunction with closing on the property. Now that loan is available to any active duty military person, retired military person, and you don't have to have spent twenty years in the military. You can actually take advantage of a VA home loan after only three to four to five years in the service, as long as you've got a general or an honorable discharge. So again, the VA home loan is an excellent program, especially if you're purchasing a home with very little money to work with. My name is Matt McKillen. I'm with Innovative Financial Group.