The Pros and Cons of VA Loans

A 30-second read by Nicholas Scheibner: The federal government has provided qualified veteran home buyers with a few mortgage-buying options to help purchase a home.  Below are some of the Pros and Cons for Veterans Affairs (VA) loans.

An important note VA loans are for primary residences only.

To determine if you are eligible for a VA loan, visit http://www.benefits.va.gov/HOMELOANS/purchaseco_eligibility.asp

The first step in getting a VA loan is to obtain a certificate of eligibility from the VA: http://www.benefits.va.gov/homeloans/purchaseco_certificate.asp

Pros:

  • 0% down payment, if desired
  • No Monthly Mortgage Insurance
  • Can generally qualify for a larger mortgage than a Federal Housing Administration (FHA) loan

Cons:

  • The only person that can co-sign is a spouse
  • An additional fee is rolled into the loan. Depending on the situation, first time use of a VA loan could be anywhere from 1.5% – 2.4%.  The next home mortgage could be anywhere from 1.25% – 3.3%.

Baron Financial Group consults with independent mortgage professionals in order to explore options available to clients.  If you are thinking of purchasing a new home, refinancing a mortgage, or consolidating a HELOC (Home Equity Line of Credit), lean on us to help you through the process. Please contact your Baron Team if you have any questions.