Free Quote

Get Your Free Rate Quote

VA Loans Offer Low Rates, Low Costs, And A Zero-Downpayment Option

Posted December 19, 2012
in Mortgage Market Headlines

VA Loans Offer Low Rates, Low Costs, And A Zero-Downpayment Option

VA loans a popular choice among qualifying borrowers

For today's military borrowers, the Department of Veterans Affairs makes available the VA Loan -- a mortgage meant to offer low rates, easy terms, and nominal mortgage loan fees.

As a compared to conforming mortgages via Fannie Mae and Freddie Mac; or FHA mortgages via the Federal Housing Administration, VA mortgages often give a better "deal".

It's no wonder that VA loans are closing at the fastest pace in 20 years.

See today's VA loan rates.

VA Loans : Who Is Eligible?

The Department of Veterans Affairs doesn't make mortgages. It guarantees them. As part of the GI Bill, the VA protects lenders making "VA-approved" loans against default and some loss. In this way, lenders are eager to offer VA home loans.

VA loans aren't available to everyone, however. They are reserved for select active and former servicemembers, as well as select Reserves and National Guard members and surviving spouses.

Eligibility will vary based on service type. For example, Gulf War veterans need 90 days of active service to be VA-eligible, whereas National Guard members require 6 years of service for the same. Members of the National Oceanic & Atmospheric Administration (NOAA) have eligibility, too, depending on length of service.

Click here for complete VA eligibility standards.

VA : 100% Financing, Never Any Mortgage Insurance

For eligible borrowers, the VA home loan offers attractive loan terms.

Mortgage rates are often as low (or lower) than comparable conforming rate mortgages, and closing costs are sometimes lower, too. Furthermore, VA loan terms can be more favorable :

  • VA loans allow for 100% financing
  • VA loans never require mortgage insurance
  • VA loans don't penalize low credit scores

Also, the VA home loan program allows home buyers to finance the cost of small repairs and construction into the actual purchase loan, including for "green" home repairs. This is not allowable via Fannie Mae or Freddie Mac.

And, lastly, buyers using VA financing get access to the VA Streamline Refinance program -- arguably the fastest and easiest refinance program available today. The VA Streamline Refinance only available to VA borrowers.

See today's VA loan rates.

Get A VA Mortgage Rate Quote

For borrowers with VA eligibility, be sure to check today's VA mortgage rates before locking something via Fannie Mae or Freddie Mac. VA mortgage rates are often a better, lower-cost option.

See today's VA loan rates.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

3 Testimonials

Mike P.

The Mortgage Reports has provided me with helpful advice. I enjoy all the various types of mortgage information. Thank you!

Thomas D. Software Developer

As a first time home buyer, The Mortgage Reports has been the only voice that I can trust, and the expertise has been helpful.

Ricardo P. Project Manager

The Mortgage Reports is awesome. The site is extremely helpful, keeps you up-to-date, and puts you ahead of the game. Add The Mortgage Reports to your reading list!

2015 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)