There are many advantages to using your VA benefit to buy a home. What most veterans don’t know is that the VA loan is the only loan option on the market that will allow for 100% financing. Most loan programs require at least a 3.5% down payment to be able to purchase. The 100% financing option allows our veterans to purchase the home of their dreams without a large down payment – which allows them to keep more money in their pocket.
Perhaps the most notable advantage is that the VA loan will allow 100% financing without the required monthly mortgage insurance. The VA loan is the only loan program available with no mortgage insurance when you put down less than 20%. This allows our veterans to enjoy the benefit of a no down payment loan option without costly mortgage insurance – potentially saving them hundreds of dollars a month.
If you have had credit issues in the past the VA loan has some of the most lenient underwriting guidelines available. They will allow a lower credit score than FHA and most conventional programs. The VA loan also has softer guidelines if you have previously had a bankruptcy of foreclosure. Veterans that will not qualify for many other loan programs may still be able to purchase a home with their VA benefit.
The VA loan also allows the seller to contribute up to 4% to help cover closing cost. With the no down payment VA loan and seller contributions, our veterans have a great opportunity to get into the home of their dreams with little to no money out of their pocket.
For those who are eligible to use their VA loan benefit we strongly encourage them to visit with a VA loan specialist to see if this is the correct loan program for them.
Source Veteran Loan Site