for your new home.
Easier to qualify
Since the U.S. government backs VA loans, the requirements tend to be more flexible, making it easier for veterans to qualify.
Lower insurance
You’ll also save on insurance, as VA loans don’t require private mortgage insurance (PMI), which most lenders require when you make a down payment of less than 20% of the purchase price. This insurance protects the lender if you default on your loan. Not having to pay PMI can save you hundreds of dollars each month.
No prepayment penalty
With a VA loan, you won’t have any prepayment penalties or early exit fees, no matter when you decide to sell your home. That means you can sell your home anytime during your loan term without worrying about penalties or fees.
Assumable and Refinance
Most VA loans are “assumable,” which means they can be transferred to another VA-eligible home buyer. This can be a benefit when the veteran goes to sell their home — especially if interest rates are going up. You can also refinance an existing VA loan into another VA loan using the VA’s Interest Rate Reduction Refinance Loan (IRRRL) program or switch to a non-VA loan at any time.
THINGS TO CONSIDER WITH A V ER WITH A VA LOAN
You have to be aware that a VA loan may not always be the
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