The Benefits of VA Loans
Unlike conventional loans, VA loans provide a wide range of unique benefits for military personnel and families, including:
- No down payment
- No limit on the amount you can borrow (but there is a limit to the liability the VA takes on)
- Low interest rates
- No Private Mortgage Insurance (PMI) requirements
- No minimum credit score (although lenders typically look for a 620 or higher)
- No first-time home buyer requirements
- No prepayment penalty
- Bankruptcy and foreclosure won’t permanently affect your approval chances
It’s important to note that VA loans can only be used for your primary residence or to refinance an existing loan. Additionally, VA loans require a funding fee