VA Home Loans
A VA home loan is a mortgage loan guaranteed by the Department of Veterans Affairs. VA financing was created by the government to benefit Americans who have served their country in the military. If you are currently in the United States military, or if you have ever served in the U.S. Armed Forces, you may be eligible.
Benefits of VA Financing
You may purchase a home with no down payment, subject to VA guidelines in your area. You may choose a fixed-rate or an adjustable-rate mortgage. There are limits to the amount of closing costs you will have to pay. You are not required to pay monthly mortgage insurance or PMI.
Are you Eligible for a VA Loan?
You might be eligible for a VA loan if:
You currently serve on regular active duty in the military. You have served on regular active duty in the military and have since been discharged.You have served in the Selected Reserves or National Guard for at least 6 years. You are an unmarried spouse of a veteran who died on active duty, or as a result of a service-connected disability. Other conditions may apply and special documentation may be required as proof of your service.
Visit the Department of Veterans Affairs for complete details.
Other Loan Options
If you are eligible for a VA loan with no down payment, there's no denying that going that route is a very attractive option. But, depending on your individual situation and lifestyle, you may want to consider other loans.
Federal Housing Administration Insured Mortgages (FHA)
The Federal Housing Administration (FHA) is a part of the United States Department of Housing and Urban Development (HUD). FHA insured loans allow you to buy a home with a down payment as low as 3.5% of the purchase price.
Conventional mortgages are mortgages that are not obtained under a government insured or guaranteed program, such as programs operated by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).