What are the benefits of a VA home loan?

There are many benefits of a VA Home loan:

  • Equal opportunity
  • No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property)
  • Buyer informed of reasonable value, negotiable interest rate
  • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation)
  • Closing costs are comparable with other financing types (and may be lower)
  • No mortgage insurance premiums
  • An assumable mortgage
  • Right to prepay without penalty
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder
  • VA assistance to veteran borrowers in default due to temporary financial difficulty

This is in most cases the better option all veterans and is a much earned benefit that can allow a veteran and their family to walk into a home with sometimes nothing out out of their pocket.