Military VA Loan

Questions? (866) 240-3742

VA Loan Benefits: Compare VA Home Loans to Conventional and FHA Loans


Posted on: August 13, 2014

VA Home Loan Advantages

Jupiterimages/photos.com

There are many benefits to a VA home loan. If you are a veteran or active duty military personnel, you should know that the VA home loan is the best mortgage on the market today. It’s worth looking into this benefit even if you never thought you could buy a home. Here’s why:

  • You can buy a home with no down payment.
  • Generous loan amounts are available, up to $417,000 or more in high-cost areas.
  • VA loan interest rates are lower than conventional loan rates.
  • VA loans do not require mortgage insurance.

To see if you are eligible for all the advantages of a VA home, click here for a free no obligation rate quote.

VA Home Loan Comparison

Let’s look at a comparison of the four major loan types for a $250,000 purchase price.

Head to Head – VA Compared to other Loan Types

VA FHA Conventional USDA
APR* 3.721% APR 4.798% APR 5.192% APR 4.246% APR
Principle and Interest $1146 $1102 $1168 $1163
Monthly Mortgage Insurance or Fee $0 $269 $210 $84
Estimated Taxes and Insurance $268 $268 $268 $268
Total Monthly Payment $1414 $1639 $1646 $1515
*Based on rates available 6/4/2013 and are shown for comparison purposes only. May not represent current rates.Check with a VA-approved lender here for today’s rates.

Qualification:

Comparison of Qualification Requirements

VA FHA Conventional USDA
Down Payment Percentage 0% 3.5% 5% 0%
Approx. Cash Needed** $0 $8750 $12,500 $0
Typical Minimum Credit Score Needed*** 620-640 620-640 680 620-640
Streamline Refinance Available? Yes Yes No Yes
**Assumes $6000 in seller-paid closing costs;
***Varies based on lender; All scenarios assume 700 credit score, property in WA

Additional Benefits of VA Home Loans

  • VA home loans have more lenient credit and debt ratio guidelines. You may qualify for a VA loan even if you can’t be approved for other loan types. Get your free rate quote.
  • You can refinance or sell your home at any time without penalty with a VA loan.
  • The seller is allowed to pay all of your closing costs up to 4% of the purchase price.

I’m Ready to Apply for this Great Benefit

The VA home loan program is a great opportunity for active duty personnel and veterans. Take advantage of your entitlement. For your free, no obligation quote, click here for a free, no obligation VA home loan rate quote.

More VA Loan Resources:

Source for VA loan information: VA Handbook