What are the advantages of a VA home loan?
There are several key advantages to VA home loans that people tend to overlook because there is a little extra paperwork involved. The first thing I want to make clear is that VA mortgages are NOT hard to obtain, and if you are a veteran you owe it to yourself to find out if a VA loan might be the right option for your family. Below I have listed out a few of the key benefits of a VA home loan…
Benefit #1 is ZERO MONEY DOWN! VA loans allow you to buy a home without a down payment! This has become increasingly hard to find on other loan types. You can buy a home in Charlotte using VA financing with no down payment upto $417,000.
Benefit #2 is VA loan DO NOT REQUIRE PMI! Even with zero down payment you are not required to pay monthly mortgage insurance premiums on a VA home loan!
Benefit #3 is LOW FIXED RATES! VA rates tend to be about the same as FHA on a 30 year fixed loan. You don’t have to worry about the rate increasing int he future, and there are also no prepayment penalties!
Benefit #4 is VA loans might allow you to BUY MORE HOUSE! VA loans have a unique debt to income qualifying rule that allows people with less non-housing debt to qualify for a higher loan than other programs. This means that if you carry 10% less debt than the average person you might be able to buy 10% MORE HOUSE!! I will explain this in more detail in the later post.
Stay tuned for future posts in which I will discuss eligibility requirement for VA loans. I will also talk about some of the negative aspects of VA loans (although there aren’t many) and when conventional might be a better option.