VA
Pros of VA Loans:
● No down payment required: VA loans do not require a down payment, making it easier for eligible veterans to become homeowners.
● No mortgage insurance required: VA loans do not require private mortgage insurance (PMI) or ongoing mortgage insurance premiums, which can save borrowers money over the life of the loan.
● Competitive interest rates: VA loans often have lower interest rates than conventional loans, which can save borrowers thousands of dollars over the life of the loan.
● More flexible credit requirements: VA loans typically have more flexible credit requirements than conventional loans, making it easier for veterans with less-than-perfect credit to qualify.
● Funding fee can be rolled into the loan: While VA loans do require a funding fee, it can be rolled into the loan amount, making it easier for veterans to finance the fee without having to pay for it upfront.
Cons of VA Loans:
● Funding fee: VA loans do require a funding fee, which varies depending on the borrower’s military status, loan amount, and other factors. The fee can range from 1.4% to 3.6% of the loan amount.
● Property requirements: VA loans require the property to meet certain standards, which can make it harder to purchase certain types of homes.
● Funding limits: VA loans have funding limits that vary by county and may not cover the full cost of a home in certain high-cost areas.
