No Private Mortgage Insurance (PMI)

With a VA loan, you also avoid steep mortgage insurance fees. At five percent down, private mortgage insurance (PMI) costs $150 per month on a $250,000 home.

With a VA loan, you could afford a home worth $30,000 more with the same monthly payment, simply by eliminating PMI. Using a VA loan saves you money upfront, and tremendously increases your buying power.

Lower Interest Rate Than Conventional Mortgages

Loan rates are typically about 0.25% lower than those of conventional loans. The VA backs the mortgages, making them a lower risk for lenders. Those savings are passed on to you as a Veteran.

Seller Contributions

Seller concessions are when the buyer asks the home seller to pay costs associated with the VA Loan. The seller is allowed to pay all of the veteran’s closing costs, up to 4% of the home price. So, it is possible to avoid paying anything out of pocket to buy a home.

Various Programs & Options

A VA loan can have a fixed-rate or an adjustable-rate. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties.

Or, it can be used to refinance your existing mortgage, make repairs or improvements to your home, or make your home more energy-efficient. The choices are yours.