VA loans are a unique home financing option created to honor and support U.S. military service members, veterans, and eligible surviving spouses. Administered by the Department of Veterans Affairs but issued through private lenders, these loans offer benefits that can be difficult to find in conventional mortgages. Key Features and Benefits: No Down Payment – Qualified borrowers can finance 100% of the home’s value without needing to save a large lump sum. VA Loans have no loan limit! No Private Mortgage Insurance (PMI) – Unlike many low-down-payment loans, VA loans don’t require PMI, saving borrowers hundreds per month. Competitive Interest Rates – Lenders often offer lower rates compared to conventional loans because the VA guarantees a portion of the mortgage. Flexible Credit Requirements – While lenders set their own standards, VA loans generally allow for lower minimum credit scores than conventional financing. VA loans offer 100% financing. Limits on Closing Costs – The VA restricts certain fees lenders can charge and allows sellers to contribute toward closing expenses. One-Time VA Funding Fee – Most borrowers pay this fee (which can be financed into the loan) to keep the program running, though it’s waived for those with service-related disabilities. More Flexibility: VA Loans allow for interested parties to actually pay off debt on behalf of the veteran in some cases. Eligibility generally depends on your length and type of military service. Once earned, the benefit can be used multiple times and is not a one-time perk. VA loans can be used to buy a primary residence, build a new home, refinance an existing mortgage, or even make certain home improvements. If you would like to learn more about VA Loans, or a side-by-side comparison of VA loans vs. FHA and conventional loans so you can see exactly where VA loans stand out, contact an FDM Mortgage Professional Today.
