Veteran Loan Benefits

The Department of Veterans Affairs want it to be easy to secure these loans. Compared to many other loans, VA loans provide flexible qualification standards that open financing for borrowers who may not qualify for other options.

Although the VA requires a funding-fee payment, this cost does not need to be paid in full right away, and can instead be rolled into the loan.

The VA provides trained team members who advocate on the behalf of veteran borrowers, helping to avoid foreclosure on the loan.

The VA has placed limits on the amount that lenders and lending professionals can charge for closing costs, once again making VA loans more affordable and accessible.

Private mortgage insurance, which protects the lender but is paid by the borrower, can increase loan payments by hundreds of dollars. Fortunately, this is not a factor for VA loans.

If you decide to pay off the loan early, there is no prepayment penalty. This makes paying off the loan far easier and more affordable.

In general, VA loans tend to have lower interest rates than other options. This is largely due to the government support provided through the VA, as well as the relatively-low rate of default by veterans.

You can find VA loans in a variety of options, including terms to fit your specific needs. Borrowers have access to fixed-rate and adjustable loans, and there are options for new construction, manufactured housing, duplexes, fixer-uppers, and more.

Perhaps the most attractive benefit, these loans can be secured with little to no downpayment. This eliminates one of the largest roadblocks to homeownership.