Benefits of VA Home Loans

If you have decided to buy a house and you’re looking for convenient home loans, a VA home loan may be the right choice for you if you are a veteran of the U.S. military or an active duty service member. You should know that home loans for Veterans are exclusively available to current and former members of the U.S. military and offer many benefits over conventional mortgages. These loans are designed to assist military veterans in securing home ownership during or after their service. Read on to learn about the advantages of these loans and how you can obtain one.

Meeting with the Eligibility Requirements

As every other mortgage, you need to meet certain eligibility criteria to get a loan. The eligibility depends on your military service. You may apply for VA loans if you have completed one of the following:

  • you served for 90 consecutive days during wartime
  • you served for 181 consecutive days during peacetime
  • you served for more than six years in the National Guard or Reserves


You can also apply for the mortgage if you are a surviving spouse of a service member who died in the line of duty or because of a service-related disability. You should consider this type of loan as a reward for your service because this mortgage doesn’t directly hand money to veterans. Instead the government applies some rules that give the veteran benefits to obtain a loan easier, realizing his dream of becoming a home owner.

How Does a VA Home Loan Work?

As we mentioned, the Veterans Administration won’t give you money. They will make you a guarantee that makes it more likely to obtain the loan, and you’ll give that assurance to your borrower. To explain this simply, they will underwrite these loans, and if the home buyer fails to repay the loan, the lender will know that the government will find the money cover the cost of the mortgage.

 No Down Payments

You probably know that when you are purchasing a new home, you need a certain amount of money for the down payment. The down payment can range depending on the total price of the home, and it can be quite costly if you haven’t prepared the money in time.  Most families save money for years to afford a new home’s down payment. With VA home loan your payment is waived and a veteran you get the right to become a homeowner with no money down.

Enjoy Lower Interest Rates

With this loan, you’ll get a lower interest rate that usually isn’t available with other types of loans. With lower interest rates, you’ll have lower monthly payments, and you’ll be able to repay your lender a lot faster.

No Private Mortgage Insurance

This insurance is created to protect the lender if you ever fail to repay your mortgage, but since you’re a veteran, you won’t have to pay this additional fee. This means you’ll get a decreased down payment by 20% of the appraised value of the home. As we mentioned, as a military man or women you don’t need a down payment, and there is also no reason to have or pay PMI.


In addition to these advantages, a VA home mortgage also gives you the right to prepay the loan without any penalties. If you decide to sell the house, your mortgage can be taken over by the new owner. You also offered special counseling and help in case of financial difficulty. If you’re looking for more information about this particular topic, please click here.


John Phillips
About John Phillips 11 Articles
Living in my own world. I'm naive and honest, straightforward.