Veterans have been earning guaranteed VA home loan benefits since 1944, and since its inception, the VA has guaranteed over 29 million home loans, valued at nearly $4 trillion. Those VA loan benefits include zero down payment, no private mortgage insurance (PMI), competitive interest rates, liberal credit requirements, lower closing costs, and a reusable benefit that never expires. Check out this complete guide to your earned VA home loan advantage so you can leverage the most effective and powerful mortgage options on the market.
What Is the VA Home Loan Benefit?
The VA has helped millions of eligible service members and surviving spouses become homeowners by providing a home loan benefit to help them buy, build, retain, or repair a home. VA loans are provided by private lenders, but the VA guarantees part of the loan. This lets your lender provide you with more favorable terms, making VA-backed loans one of the best mortgage options out there.
1. No Down Payment Required
Zero down payment is one of the pillars of the VA loan guarantee. Why? It saves you lots of money! Instead of having to come up with between 5% and 20% for a down payment, you can keep that money in the bank. The VA guarantees a portion of the loan, which reduces lender risk. In essence, the VA loan guarantees a portion of your loan. Note: Even though the VA does not require a down payment, some borrowers may be asked by their lender to make a down payment, even when using the VA home loan guarantee.
