Guaranteed by the VA
A VA loan is a type of mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA). These loans are designed to help eligible military veterans, active-duty service members, and certain eligible surviving spouses buy a home.
The veteran must have served in the military for a minimum of 90 days during wartime or 181 consecutive days during peacetime. Surviving spouses of veterans who died in the line of duty may also be eligible for a VA loan.
Excellent benefits
Some of the key benefits of VA loans include:
- No down payment: VA loans do not require a down payment, making it easier for veterans to buy a home.
- No private mortgage insurance (PMI): Unlike other types of loans, VA loans do not require PMI, which can add hundreds of dollars to a monthly mortgage payment.
- Low interest rates: VA loans often have lower interest rates compared to conventional loans, which can result in lower monthly payments.
- No prepayment penalties: VA loans do not have prepayment penalties, which means borrowers can pay off your mortgage early without incurring extra fees.
- Relaxed credit standards: VA loans have more relaxed credit standards compared to conventional loans, making it easier for veterans with lower credit scores to qualify for a loan.
