The VA loan program helps our nation's veterans and active military personnel become homeowners. There are lots of benefits to buying or refinancing a house with a VA loan. Here are some of them.
Veterans can purchase a home with a 0% down payment
One of the most valuable benefits of VA loans! Since these loans are backed by the U.S. Department of Veterans Affairs, veterans can buy a house with no down payment. This helps make homeownership affordable for our military members.
There is no private mortgage insurance on VA loans
On a conventional loan, you need to make a 20% down payment to avoid private mortgage insurance (PMI), which is an additional expense on top of your monthly principal and interest payments. There is no private mortgage insurance when you buy a house with a VA loan.
Most veterans, however, will need to pay a VA funding fee when they purchase or refinance a house. The funding fee helps the Veterans Administration cover losses on loans that might default. The fee is based on your service, how much you put down on the home and if you've had a VA loan before.
VA loans have no minimum credit score
Lenders can have more flexible credit score requirements for VA loans compared to conventional loans. These requirements may vary by lender. Don't let a lower credit score stop you from applying! Freedom Mortgage is proud to offer VA loans to our nation's veterans and military personnel.
Competitive interest rates
Since the VA insures these mortgages, lenders frequently offer interest rates that are competitive with the rates on conventional loans. Competitive interest rates are another benefit of the VA loan program.
Refinancing VA loans can be faster and cheaper
Veterans who qualify can refinance their mortgages through the Interest Rate Reduction Refinance Loan (IRRRL) program which is sometimes called a "streamline" refinance. These loans help veterans when interest rates drop by making it simpler to get a new mortgage. You can use the IRRRL program to switch from an adjustable rate to a fixed rate mortgage too. Veterans can only use the IRRRL program to refinance an existing VA loan into a new VA loan.
Surviving spouses may qualify for loan benefits
The surviving spouses of some veterans may qualify for the same benefits of the VA loan program as veterans and active duty military personnel. See our article on VA loans for surviving spouses to read more details.
Veterans can re-use their loan benefits
Whether you are currently serving or served in the military 40 years ago, you can use a VA loan to buy a home. And you can keep using your loan benefit. For example, if you bought a starter home and are ready to move up, you can re-use your benefit for your new home purchase.
One veteran's story of working with Freedom Mortgage
We are committed to serving all our customers and we are particularly committed to serving the veterans who served our country. One of those customers is Susan, a veteran who has her mortgage with Freedom Mortgage. Susan likes how we always answer her questions and treat her with dignity and respect. We're grateful we've inspired Susan to tell us our "Customer Service is the best."1
This is feedback we work to earn from all our customers. Would you like to talk to a Freedom Mortgage Loan Advisor about the benefits of the va loan program? Get Started today or call us at 877-220-5533.
- All quotes are from Susan, a Freedom Mortgage customer whose comments are dated Apr 15, 2019. Visit the Freedom Mortgage customer review page to read more comments.