Key Differences of VA Loans vs Conventional Loans

va-home-loan

In Ann Arbor, and around the country, 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 – FICA 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 is a great benefit for our service men and women who give so much to their country. For a complementary list of local lenders who offer VA Loans, please contact me or send me a message via the question box to the right of this article. You can also visit https://www.benefits.va.gov/homeloans/ for more information about VA Loans.