Since its inception in 1944, the VA home loan has been used by more than 20 million Americans to get a mortgage. This program has some great advantages, and we’ve put together a video to highlight them.
VA Home Loan Basics
Insured by the Department of Veterans Affairs (VA), VA home loans are available to our nation’s military vets, eligible active duty service members and qualified surviving spouses.
The program is very attractive for several reasons.
To begin with, there’s a great deal of flexibility. You can get a VA-backed fixed-rate mortgage with a term of 15, 20 or 30 years. If you don’t plan on being in a house for very long, the VA also offers a 5-year ARM that might be right for you.
VA loans are the only program that doesn’t require a down payment. This can save you money upfront. And whether you put down 1% or 20%, you won’t have to pay private mortgage insurance on your VA loan. This can save you thousands over the life of the loan.
Under the VA program, you can refinance up to 120% of your home’s value. That could mean extra money in your pocket to put toward home improvements, a college education or whatever you choose. The VA also offers a streamline refinance program, which means there’s less hassle with documentation than on a comparable conventional loan.