Key Differences of VA Loans vs Conventional Loans
Our service personnel and veterans give so much to our country. While they sacrifice much, there are a few special benefits that only these service men and women can take advantage of; one of the best benefits is the VA Loan. The VA Loan differs from a Conventional Loan in a number of ways. While both provide great interest rates for borrowers and are both backed by US Government guarantee programs, this is where the similarities end.
Key Differences/Advantages of the VA Loan :
0% Down Options – VA Loans offer the option of a 0% down payment vs conventional loans which need 10-20% minimum down payment.
No Private Mortgage Insurance Required
More Lenient Credit Qualifications – FICO scores are used for both conventional and VA Loans, but VA Loans consider a lower threshold for loans while still offering favorable interest rates.
Can Be Used More Than Once – VA Loan borrowers can regain their eligibility for a VA Loan without giving up their first loan. In other words, if a service member wishes/needs to rent out their current home to move, they can regain their eligibility and use the VA Loan Programs again. VA Loans are a great benefit for our service men and women who give so much to their country.