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Benefits of the VA Home Loan Program

How VA Loans Make Financing a House More Affordable for Veterans

The VA loan program helps our nation's veterans and military personnel who qualify buy and refinance homes. VA loans are offered by private lenders and guaranteed by the federal government. There are lots of benefits to choosing a VA loan including...

0% Down Payments

Because VA loans are backed by the U.S. Department of Veterans Affairs, veterans can buy a house with no down payment. This helps make homeownership more affordable.

No Mortgage Insurance

You don't have to pay for mortgage insurance when you buy or refinance a house with a VA loan. Most veterans will pay a one-time VA funding fee when they use a VA loan, however. The funding fee helps the VA cover losses on mortgages that might default. The fee is based on your service, your down payment, and if you've had a VA loan before.

Competitive Interest Rates

Since the mortgages are VA insured, lenders can offer interest rates that are competitive with the rates on other loans. Read more about factors that influence the mortgage rate you may be offered.

Low Minimum Credit Score

Lenders can have more flexible credit score requirements for VA loans. 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.

No Loan Limits

Veterans can qualify for a VA loan with no down payment and no maximum home price. Previous VA loan limits set by the Department of Veterans Affairs were removed for veterans that have their full VA home loan entitlement.

Limits on Closing Costs

The VA requires commissions for real estate professionals, brokerage fees, and buyer broker fees be paid by the seller. You can also negotiate with the seller for who pays closing costs like origination fees, discount points, and the VA funding fee.

No Prepayment Penalties

A prepayment penalty is a fee some lenders may charge when you pay down or pay off a mortgage sooner than the terms require. There are no prepayment penalties with VA loans.

Refinancing Can Be Easier

Veterans who qualify can refinance using the VA IRRRL program which is sometimes called a streamline refinance. These loans help veterans take advantage of lower rates with less paperwork and faster closings. By refinancing, the total finance charges may be higher over the life of the loan. Veterans can only use the IRRRL program to refinance an existing VA loan into a new VA loan.

Surviving Spouses Can Qualify

The surviving spouses of veterans can get approved for VA loans and they don't have to pay the funding fee when they do. Read more about how surviving spouses can qualify.

Loan Benefits Can Be Reused

Whether you are currently serving or served in the military 40 years ago, you can use a VA loan to buy or refinance 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.

Freedom Mortgage is a top VA lender in the United States according to Inside Mortgage Finance, Jan.–Mar., 2024.

Last reviewed and updated April 2023 by Freedom Mortgage.

VA loans vs. Conventional loans

What are the benefits of VA loans compared to Conventional loans?

How to apply for a VA loan

Learn more about eligibility and VA loan applications

How to refinance a VA loan

Answers to your VA refinancing questions