There are several types of loans available for most homeowners. However, the VA loan is unique in the fact that only qualifying veterans can apply for the mortgage.
Benefits of VA Loans
Down Payment is not required: The most talked about aspect of the mortgage is the fact that a down payment is not mandatory. A qualifying veteran that is approved for a mortgage will not be asked to pay any money as a down payment. This one feature can save the veterans thousands of dollars.
No requirement for private mortgage insurance: Conventional loans, as well as FHA loans, ask the borrower to pay private mortgage insurance if the borrower does not pay at least 20% down. The private mortgage insurance protects the lender, not the borrower if the loan is not entirely repaid. This insurance can often add a significant fee to the monthly payment for the mortgage. However, in the case of the VA mortgage, there is no private mortgage insurance requirement.
Great interest rates: Although the VA mortgage is not offered directly through the Veterans Administration, the loans are partially guaranteed by the federal government. This allows lenders to offer the loans at very competitive terms and interest rates in comparison to other types of mortgages.