For many Americans, saving 20% for a down payment on a home, much less a down payment at all, can be a struggle. Fortunately, as an active or former member of the United States military, you have certain privileges when it comes to getting a home loan. The U.S. Department of Veterans Affairs sponsors one of the most coveted mortgage products for military members in the form of the VA loan.
Our REALTORS® have worked with countless active military members, veterans, and their families to help find solutions for them to realize the dream of homeownership. Here's everything you need to know about VA loans.
No Down Payment
Probably one of the most attractive attributes of VA loans is the fact that no down payment is required. Most conventional loans require a 5% down payment with 20% needed to avoid private mortgage insurance (PMI). Most Americans have a hard enough time cobbling together 5% down, and many won't reach the 20% threshold until they've paid as much in equity. Fortunately for veterans, there is no down payment required for a VA loan, meaning you can finance 100% of the purchase price of your home.
VA loans are powerful tools for service members to purchase homes and offer a number of significant advantages. There is no required down payment for a VA loan, favorable interest rates are available, and credit requirements are more relaxed than with traditional loans. You can take advantage of the VA loan program while you are active-duty or after you have completed your service. Yet, VA loans also have some unique, complex rules, so it's important to understand how the process works. Our REALTORS® are here to help, with four tips for buying a home with a VA loan.