VA loans are the best loans available however only those who are veterans or who are actively serving in the armed forces qualify. The armed forces include Army, Navy, Air Force, Marines, and Coast Guard.

There is no down payment required. This is the only loan available that allows for 100% financing in non-farm areas (USDA). Conventional loans require a minimum of 5% and up to 20% in some cases which we all know can be hard for many buyers. Loan limits are determined by the VA and are different for each county. The maximum is $417,000.

Unlike Conventional or FHA loans, VA doesn’t require monthly mortgage insurance. Conventional loans require mortgage insurance if you don’t make a 20% down payment. All FHA loans require it. On an FHA loan of $250,000 the mortgage insurance would be an additional $239/month. Over 5 years that would be an extra $14,340 in payments. As you can see VA loans can save a bundle. Plus that additional insurance reduces the amount you qualify for.

With a VA loan you can finance up to a 4 unit property. If you choose this option the rent for the other three units must cover the overall mortgage payment. Also the buyer must intend to live in the property for at least 1 year. This is the fastest way to set yourself up for retirement. Imagine you could by the 4 unit property down the street with no money down and up to 60% DTI. It’s impossible unless you are using a VA loan.

Most VA lenders have easier qualification standards for VA loans. For instance the minimum credit score is 620, much lower than Conventional or FHA loans. Also VA has stood its ground on guidelines while FHA and Conventional loans have changed their guidelines several times over the last few years. With each change the guidelines became more stringent. VA loans allow up to 60% DTI which is much higher than the 45% requirement for Conventional.

Of course there are other benefits to the VA loan program and if you want to learn more please give me a call at 843-388-5763.