VA Loans

The VA Loan is a mortgage loan issued by approved lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). The goal of VA loans is to make homeownership easier for those whom have served in the military and have meet outlined requirements. With lenders across the United States tightening their lending requirements, VA loans have been a very important option for veterans looking to own a home.

VA Loans have become a necessary lifeline for many veterans whom might not otherwise have the funds for a down payment or the best credit score. Many mortgages have several guidelines and necessary requirements to qualify. VA Loans are very popular for active duty members and veterans in your area. 

The U.S. Department of Veterans Affairs (VA) does not make direct loans to veterans. They instead provide an incentive to private lenders to protect the loans if they in return provide favorable terms they regulate.

VA Loans Have Many Advantages

0% Down Payment

VA Loans has many advantages which make the loan terms very favorable for those veterans who meet the qualifications. VA Loans offer 0% down for quailed borrowers unlike many other loan options which typically require a percentage of the mortgage down (typically 3.5 for an FHA loan). With a 0% down payment, purchasing a home becomes more accessible.

No Mortgage Insurance Required

Unlike other loan options like FHA and Conventional Loans, a VA loan does not require monthly mortgage insurance. Without having to pay a monthly mortgage insurance premium, veterans can utilize their capital for their monthly payment and other repairs/purchases for the property. Veterans still have the option to purchase private mortgage insurance from a 3rd party in addition to having standard home insurance offered through their primary insurance provider.

Relaxed Credit Requirements

While many VA Lenders do not have a set minimum requirement to be accepted for a VA Loan, typically lenders look for a minimum credit score of 620. These credit outlines are more relaxed than standard FHA or conventional mortgage loans. For those veterans who might have come upon hard times with a past foreclosure or bankruptcy, VA loans after often more forgiving to help get veterans approved.

Zero Prepayment Penalties

One of the best strategies to save money long-term is to pay off your debt as aggressively as possible. VA loans have no prepayment penalties which is an excellent benefit for these loans and the borrower. Typically other loan options do have prepayment penalties which are imposed to discourage borrowers from paying off their loan too early and closing the lender a lot of lost interest payments.

Avoid Foreclosure

The U.S. Department of Veterans Affairs (VA) has made VA loans not only accessible, but safe for those borrowers securing a new mortgage or already paying one off. VA residual income minimums help protect veterans looking to purchase and stay in their homes. When lenders use this information, they work with veterans to find out how much mortgage they can afford to pay based on a number of factors including but not limited to: family size, gross income, utility costs, etc.


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