Home Buyer Benefits

For most veterans, a VA Loan is the single best option for financing a home purchase. VA loans are very accommodating, government-backed loans that include many appealing features like little to no down payment, no private mortgage insurance (PMI) requirements, and very competitive rates. With no down payment needed, many veterans find homeownership to be much more affordable. Plus, with regular loans many conventional lenders will require you to pay for private mortgage insurance unless you can afford to put 20% down on a home. For veterans, this is not the case. VA Loans waive this requirement because the federal government takes on the risk of a borrower defaulting on their loan. By not having to pay for PMI, veterans will save approximately $115 a month on a $150,000 home loan. For a $450,000 home, they would save about $345 per month. As far as interest rates go, veterans who opt to finance with a VA Loan will see lower rates than that of a conventional loan. This is again because the government backs these loans – guaranteeing financial institutions that they will receive payment. As such, VA Loans tend to see interest rates that are about .5 to 1% lower.