3 VA Loan Benefits You Should Know

by Carolyn Kay 02/19/2023

The U.S. Department of Veterans Affairs has helped countless veterans finance their home ownership goals. While you have the choice of a conventional loan offered by other mortgage lenders, there are some significant benefits to VA loans. Here are some of the most important advantages to consider:

No Down Payment

The most famous benefit of VA loans is the lack of down payments. Homebuyers taking out a conventional loan typically need to pay around 3% of the home's purchase price up front as part of their loan terms. Even a small percentage can mean tens of thousands of dollars out of pocket. A VA loan will help you save this money instead of potentially draining your hard-earned savings.

No Private Mortgage Insurance

Private mortgage insurance is required by lenders to protect them against the chance of you defaulting on your loan. Not only do these insurance policies have hefty upfront charges, the ongoing annual cost can last the entire life of your loan. Luckily, with VA loans, there is no requirement for private mortgage insurance, saving you money and time.

Easier Financial Requirements

Mortgage lenders conduct a careful analysis of your financial profile when you apply for a loan. For most lenders, credit score requirements can be especially strict. Even if you qualify for a loan, a lower credit score might mean higher interest rates or private mortgage insurance premiums. VA loans don't have a credit score requirement, so no matter what state your credit is in, you can still be approved for a loan.

The same goes for debt-to income ratios. While VA lenders still consider DTI ratios in the approval process, the requirements are much more flexible and forgiving. Even with a high debt-to-income ratio, you can be approved for a VA home loan with other financial factors like credit score working in your favor.

These are only a few of the major benefits offered by VA home loans. Remember these factors if you're deciding between a VA or conventional loan so you can make the best decision for your situation.

About the Author

Carolyn Kay

As a Real Estate professional, I specialize in helping my clients buy, rent or sell properties in Westchester County. I am passionate, dedicated and committed to my clients and my first priority is to provide them with first class service and guidance throughout the entire process. It has been said that I go above and beyond for my clients to get the deal closed! I have experience working with clients who have financed their purchases with either a conventional, VA or FHA loan and have a good understanding of how they work; no sale is too big or too small for me to take on. My family and I relocated to England for 2 ½ years, this was a wonderful experience but at the same time, it was overwhelming. I have first hand knowledge of the challenges as well as the positives in discovering a new community. I was born and raised in Scarsdale and once married, my husband and I decided to raise our two daughters here. Both of our daughters successfully graduated from the Scarsdale schools and are both married, living and working in Manhattan. After living in the same house for 30 years my husband and I took the leap, sold our home and bought and renovated a condo townhouse in another town. Once again we are discovering a new community and fully understand the highs and lows of selling a home we loved and buying and making a new home. I feel that my personal real estate experiences have made me more in tune with my client’s needs and therefore better able to help them navigate through the complex process. Please call me so that I can put my knowledge and experience to work for you.