Benefits of VA Loans

A department of Veterans Affairs home loans - VA loan - is probably the most flexible and powerful lending option on today's market. VA loans offer great advantages over non-VA loans that will save you a lot of money.

These loans are available from most lenders and require no down payment. It's nearly impossible to find another lending option that provides you with 100% financing.

Conventional home loans come with a monthly mortgage insurance of roughly $100 - $200. Non-VA borrowers are usually required to pay private mortgage insurance. The VA prohibits lenders from requiring any private mortgage insurance, so as a VA borrower you will not have to worry about that. VA loans have less severe underwriting requirements than non-VA loans. These loans also come with lower interest rates than conventional loans. Interest rates can also be negotiated. With a VA loan the borrower can choose which type of interest rate he or she wants: fixed or adjustable.

VA loans allow borrowers to transfer their mortgage to someone else. No prepayment penalty is another advantage of VA loans. VA also allow the seller to pay closing costs for you so there will be no out-of-pocket closing costs required. Disabled veterans have some other additional benefits as well.