There are a variety of different loan programs available to American home buyers, and each has its own unique benefits. There is one mortgage type, however, that has proven to be the best option for all who qualify for it - the VA loan.
A VA home loan is backed by the U.S. Department of Veterans Affairs, and is offered to active-duty military, veterans and a number of other potential home buyers. Its distinguishing trait is that it requires no down payment or mortgage insurance, unlike other mortgage types.
The home loan experts over at the Mortgage Reports put together a list of 10 of the biggest benefits VA loans have, and what makes them potentially better than FHA and conventional mortgages.
In addition to no down payment and no mortgage insurance, VA loans offer lower closing costs, and funding fees that can be financed with the loan. This means that it is possible to have nothing due at closing, which is perfect for buyers who do not have a lot of cash on hand.
VA mortgages also have much lower rates than other loan types, as they are backed by the U.S. government. And because they are available through many different lenders, it is easy to shop for the best rate. Right now VA 30-year mortgage rates at BestRateUSA are lower than traditional 30-year fixed rates, at around 3.5 percent.
If you are looking to refinance your home, VA loans can be used for that as well, and there are never any prepayment penalties or early exit fees. They are also easier to qualify for than a conventional loan, especially if you currently have a VA loan and wish to refinance.
