08/16/2023
Why choose VA?
The VA Home Loan is often the best home loan product for Veterans. Some benefits include:
• No down payment as long as the sales price is at or below the home’s appraised value (the
value set for the home after an expert review of the property) See VA Appraisal section below
• No loan limit with full entitlement if you can afford the loan, VA will back loans in all areas of
the country, regardless of home price.
• Competitive terms and interest rates from private banks, mortgage lenders, or credit unions
• No need for private mortgage insurance (PMI) or mortgage insurance premiums (MIP)
o PMI is a type of insurance that protects the lender if the borrower ends up not being
able to pay the mortgage. It’s usually required on conventional loans if the down
payment is less than 20% of the total mortgage amount.
o MIP is what the Federal Housing Administration (FHA) requires borrowers to pay to selfinsure an FHA loan against future loss.
o Not having to pay PMI could save a borrower on their monthly mortgage payment
• Fewer closing costs, which may be paid by the seller, lender, or any other party
• No penalty fee for paying off the loan early
