Ignite FB Tracking Pixel3 VA Loan Benefits You Should Know - Corey Melkonian

3 VA Loan Benefits You Should Know

by Corey Melkonian 06/13/2022

The U.S. Department of Veterans Affairs has helped countless veterans finance their home ownership goals. While you have the choice of a conventional loan offered by other mortgage lenders, there are some significant benefits to VA loans. Here are some of the most important advantages to consider:

No Down Payment

The most famous benefit of VA loans is the lack of down payments. Homebuyers taking out a conventional loan typically need to pay around 3% of the home's purchase price up front as part of their loan terms. Even a small percentage can mean tens of thousands of dollars out of pocket. A VA loan will help you save this money instead of potentially draining your hard-earned savings.

No Private Mortgage Insurance

Private mortgage insurance is required by lenders to protect them against the chance of you defaulting on your loan. Not only do these insurance policies have hefty upfront charges, the ongoing annual cost can last the entire life of your loan. Luckily, with VA loans, there is no requirement for private mortgage insurance, saving you money and time.

Easier Financial Requirements

Mortgage lenders conduct a careful analysis of your financial profile when you apply for a loan. For most lenders, credit score requirements can be especially strict. Even if you qualify for a loan, a lower credit score might mean higher interest rates or private mortgage insurance premiums. VA loans don't have a credit score requirement, so no matter what state your credit is in, you can still be approved for a loan.

The same goes for debt-to income ratios. While VA lenders still consider DTI ratios in the approval process, the requirements are much more flexible and forgiving. Even with a high debt-to-income ratio, you can be approved for a VA home loan with other financial factors like credit score working in your favor.

These are only a few of the major benefits offered by VA home loans. Remember these factors if you're deciding between a VA or conventional loan so you can make the best decision for your situation.

About the Author
Author

Corey Melkonian

My goal as a Real Estate Sales & Development professional is to provide the highest level of service for my clients. I feel that it is important to provide a wide array of information regarding all of your Real Estate needs. You will find on my website a wide selection of online tools which can be used to provide you with the most current Real Estate information. I am here to help you in every step of the way. You can count on me. 

I welcome the opportunity to represent you in the sale or purchase of your home and I enjoy what I do.