Top 5 Advantages of Buying with a Veteran Home Loan in 2020

For qualified military members and veterans, buying a house can be easy and affordable. It’s all thanks to the veteran home loan program. While you don’t have to use this type of loan to buy a house, it’s almost always going to be a better deal for you and your family. Here are a few of the top benefits you can expect from using a VA loan to finance your home purchase.

5 Amazing Benefits of Buying a House With a Veteran Home Loan

Using a VA loan to buy a house is a lot like using a conventional mortgage, but it has very few downsides. These are just a few of the benefits you’ll see first-hand when you buy a house with a VA loan.

1. No Down Payment

With a conventional mortgage, you’re expected to pay at least 20 percent of the home’s sale price as a down payment to secure the loan. When you buy with a veteran home loan, you can finance the full sale price, no down payment required.

2. No Private Mortgage Insurance

With some home loans, you’ll need to pay for private mortgage insurance if you don’t have a large enough down payment upfront. This increases the amount you pay on your mortgage each month. With a veteran home loan, you don’t have to worry about private mortgage insurance even if you’re not making a down payment.

3. You’ll Get Better Rates

With a VA loan, you’re able to take advantage of incredibly low interest rates. In most cases, veterans qualify for lower interest loans through the VA loan program than they would with a conventional mortgage. Keep in mind that you’ll still want to shop around.

4. No Prepayment Penalty

Some loans charge you a service fee and penalty if you pay them off before the end of your loan term. VA loans never will. You’re free to make more than the minimum payment every month if you so choose.

5. More Lenient Requirements

Conventional mortgage lenders have strict requirements about who qualifies for a loan. You need great credit, a stable income, and a sizeable down payment at a minimum. It’s much easier to qualify for a veteran home loan, helping you get into a house even if your finances aren’t in perfect shape.