Advantages
- No down payment required
- Reduced or no funding fee for qualifying disabled veterans
- No private mortgage insurance (PMI) allowed
- Less restrictive qualification guidelines
- Streamline refinance loan programs available
- Access to low VA mortgage rates
- Does not allow for extraneous loan charges
Disadvantages
- One-time funding fee (which can be financed into the loan)
- Sellers may be hesitant to sell to a buyer using a VA loan
- Strict appraisal process making “as is” sales more difficult
- Must be current or ex-military personnel to qualify (Certificate of Eligibility required)
- Complex loan process as compared to other mortgage types
Who is Eligible for a VA Loan?
- Veterans
- Active Duty Personnel
- Current or Former Reservists/National Guard members
- Some Surviving Spouses
What are the Benefits of a VA Loan?
- Purchase a home at a competitive interest rate often without requiring a down payment or private mortgage insurance, which gives you more savings.
- Cash Out Refinance options allow you to take out cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements.
- If you have a service-related disability, you may qualify for waived funding fee, reducing closing costs.
- Borrowers can often refinance to a lower rate within the VA program without requalifying for the program.
- You can reuse the benefit.