Blog > VA Loan Facts
If you’re a current or former member of the U.S. military, you may be eligible for a VA loan, a unique and valuable benefit offered by the Department of Veterans Affairs. VA loans are designed to help veterans and their families achieve the dream of homeownership… and help they do! According to Realtor.com, there have been over 28 million VA loans issued in its 80-year history. To make the most of this opportunity, here are the top five must-know facts about VA loans:
No Down Payment Required
One of the most attractive features of VA loans is that they often require no down payment. This means you can purchase a home with 100% financing, a significant advantage over conventional loans. Saving for a down payment can be a major hurdle for many first-time buyers, but VA loans eliminate that barrier.
No Private Mortgage Insurance (PMI)
Unlike conventional loans, VA loans do not require private mortgage insurance, even with a low or no down payment. This can save you hundreds of dollars every month and make homeownership more affordable.
Competitive Interest Rates
VA loans typically offer competitive interest rates. Lenders view VA-backed loans as less risky, which often leads to lower rates compared to conventional loans, helping you save money over the life of your loan.
Flexible Credit Requirements
While good credit is important, VA loans tend to be more forgiving when it comes to credit scores. This flexibility allows more veterans to qualify for these loans, even if they’ve faced financial challenges in the past.
Reuse of VA Loan Benefits
Your VA loan benefits can be used multiple times throughout your life. If you’ve paid off a previous VA loan or sold the home, you can often use your entitlement again to buy another home. This makes VA loans a powerful tool for long-term financial planning.
So you see: VA loans are a valuable resource for veterans and active-duty military personnel. Understanding these must-know facts will help you make the most of this unique homeownership opportunity. Whether you’re a first-time homebuyer or looking to refinance, VA loans offer significant advantages and are well worth exploring if you’re eligible!