Why VA Home Loans?

Why a VA Home Loan?

VA Home Loans allow current or past Veterans who are qualified home buyers the opportunity to purchase a home with no money down and no private mortgage insurance (PMI). VA Home Loans also come with the piece of mind of a home inspection to ensure the house meets certain government structual standards, a mandatory termite inspection, and an apraisal that informs the buyer of the value of the home. VA Loans are even eligable to finance new builds and inspections are done at certain intervals during construction.

If your a Veteran and would like more information on VA Home Loans, read the quick comparison chart below, and then start your VA Home Loan Application.


 

VA

Conventional

Down Payment

No down payment required. However, a down payment can reduce your VA funding fee and is acceptable from a variety of sources, including a third party.

A minimum down payment of 5% is required. This amount must be paid by the borrower with their own funds.

Loan-To-Value (LTV)

Maximum LTV is 103%.

Maximum LTV is 95%.

Private Mortgage Insurance (PMI)

PMI is not required.

PMI is required on all loans that are more than 80% LTV.

Upfront Funding Fees

Upfront Funding Fees will vary based on the amount of down payment, as well as whether it is being used for the first time or for a subsequent loan.

 

Type of Veteran

Down Payment

Percent for

first time use

Percent for subsequent use

Regular Military

 

None

5%

10%

2.15%

1.50%

1.25%

3.3%

1.50%

1.25%

Reserves/ National Guard

None

5%

10%

2.4%

1.75%

1.50%

3.3%

1.75%

1.50%

 

Exempt from Funding Fee

If a veteran receives at least 10% disability from DVA, they will be exempt from this funding fee.

No Upfront Funding Fees.

Minimum Credit Requirements*

*subject to change at any time without notice

Minimum FICO score 620.

Minimum FICO score 640 when LTV is less than 80%;

Minimum FICO score 680 when LTV is greater than 80%.

Closing Costs

Has limitations which fees can be paid by veteran and a maximum limits for all fees.

No restrictions apply.

Assumable Loan

Loan can be assumed.

Loan cannot be assumed.

Energy Efficient Improvements

Can be eligible to be financed into the loan.

Not eligible to be financed into the loan.

Late fees

4% of your monthly P&I (principal and interest)

5% of your monthly P&I