If you are a first-time home buyer and qualify for a VA home loan, did you know you can purchase a home with zero money down? If that is not enough of a wow factor, then what if we said that you also don’t have to pay for private mortgage insurance (PMI), and VA loans come with lower closing costs and interest rates compared to conventional loans. If we had you at zero money down, then this guide is for you. We will explain why VA loans are best for first-time homebuyers like you, VA loan requirements, a step-by-step process to buying a home with a VA loan, and how to avoid common mistakes first-time home buyers make when applying for a VA home loan. Before we go any further, let’s clear one thing up. A VA home loan is a federal program available nationwide, and not a program specific to the Commonwealth of Virginia. Loans are provided by private lenders, and the VA guarantees a portion of the loan, allowing lenders to provide you with more favorable terms.
Why VA Is the Best First-Time-Buyer Loan
The easy answer is— it saves you lots of money! First, as a first-time home buyer, you can get into a home with zero money down. This advantage eliminates the need for private mortgage insurance (PMI). More savings come with competitively low interest rates and limited closing costs. Finally, since the VA home loan is a lifetime benefit, you can use your eligibility multiple times.
