Why should I use a VA loan to purchase a home?
NO Downpayment – 100% financing – For loans up to $687,500. Loans greater than that will require a down payment equal to 25% of the difference between the purchase price and $687,500.
LOWER Interest Rates – Lenders face less risk on a VA loan since the loan is government backed and, in general, veterans usually have a lower default rate that traditional borrowers.Therefore, this typically results in rates that are 0.25% than other loans.
Flexible Credit Standards – In general, the minimum acceptable FICO score for a VA loan is 620, but each lender has the ability to set its own minimum and requirements for the borrower.
Pay off Existing Debt – Seller may credit buyer with up to 4% of purchase price to pay off existing debt!
NO Mortgage Insurance Premiums – All other loan programs in which a borrower puts less than 20% down will require private mortgage insurance(PMI) of some sort. This is not the case with the VA and makes it a huge benefit!
Use BAH to accumulate equity in a home and INCREASE net worth – Instead of using your BAH to rent a home and put the money directly into a landlord’s pocket, why not purchase a home and keep it for yourself? For similar payments and limited out of pocket expenses, as a homeowner, you can accumulate equity in the home and benefit from the appreciation of the property over time.
DOES NOT expire and IS resuable – Unlike other military benefits, it can be used over and over again. There is no time limit and no limit to the number of times the benefit can be used.