VA Loan Benefits: Compare VA Home Loans to Conventional and FHA Loans
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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 |
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 |
***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:
- VA Loan Checklist
- Income Guidelines
- VA Eligibility
- VA Jumbo Loans
- VA Loan Closing Costs
- VA Funding Fee
Source for VA loan information: VA Handbook
