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VA Home purchase Loans

Benefits and Perks of VA Home Loans

Millions of veterans and service personnel are eligible for a VA home loan. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans:

  • No down payment is required in most cases. Conventional loans typically require a 5 percent down payment, and FHA loans require 3.5 percent.
  • No monthly mortgage insurance premium to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.
  • Limitation on buyer's closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.
  • Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types.
  • No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.
  • An assumable mortgage, typically subject to VA and/or lender approval. You may be able to have someone take over your mortgage payment, which can be a big benefit in an environment of rising interest rates.
  • Foreclosure avoidance advocacy from the VA loan program. The VA has staff members who advocate on behalf of homeowners to find alternatives to foreclosure.

What VA Cannot Do

Guarantee that the house you buy, whether it is new or previously occupied, will be free of defects. The VA appraisal is not intended to be an "inspection" of the property. If you have any doubts about the condition of the house, it is in your best interest to seek expert advice before you legally commit yourself in a purchase agreement.

Most sellers will permit you, at your expense, to arrange for an inspection by a qualified residential inspection service and negotiate with you concerning repairs to be included in the purchase agreement. Such action can prevent later problems, disagreements and disappointments. Remember, VA guarantees only the loan, not the condition of the property. It is your responsibility to be an informed buyer and assure yourself that what you are buying is satisfactory to you in all respects.

VA cannot guarantee that you are making a good investment, or that you can resell the house at the price you paid. VA does not have authority to provide you with legal services.

Compare Top VA Purchase Lenders

Take the guesswork out of finding a VA Loan provider. Veterans United created this site to educate and empower military homebuyers. Regardless of what lender you pick, it's always a good idea to compare and know your options.

  • NMLS #1907
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    • Veterans United ranks No. 1 in Customer Service for VA purchase lenders, according to ratings and reviews collected by TrustPilot.
    • In 2016, Veterans United closed 31,956 VA Purchase Loans, which was 9% of all VA Purchase Loans closed nationwide last year.
    • VA Loans were 96.8% of the company’s total loan volume.
  • NMLS #401058
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    • USAA ranks No. 5 in Customer Service for VA purchase lenders, according to ratings and reviews collected by TrustPilot.
    • In 2016, USAA closed 26,734 VA Purchase Loans, which was 8% of all VA Purchase Loans closed nationwide last year.
    • VA Loans were 73.9% of the company’s total loan volume.
  • NMLS #399807
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    • Navy Federal ranks No. 3 in Customer Service for VA purchase lenders, according to ratings and reviews collected by TrustPilot.
    • In 2016, Navy Federal closed 17,477 VA Purchase Loans, which was 5% of all VA Purchase Loans closed nationwide last year.
    • VA Loans were 51.7% of the company’s total loan volume.
  • VALoans.com is a service of Veterans United Home Loans.
  • Customer Service: All ratings and reviews sourced provided by TrustPilot. VALoans.com is not affiliated with TrustPilot and has no control or influence on how users rate each lender.
  • 2016 VA Loans: Total VA loan volume for fiscal year 2016 as reported by the Department of Veterans Affairs (VA Home Purchase, VA Interest Rate Reduction Refinance, VA Cash-Out Refinance).
  • % VA Volume: Percentage of lender's total loan volume is comprised of VA Loans (source).