No Down Payment VA Mortgage Program

Due to changes and increased regulation of the mortgage industry over the past several years, there are very few options that allow 100% financing for a home purchase. A VA Mortgage Loan is one of the few remaining no down payment mortgage programs and is only available to eligible Veterans.

VA Loans Allow $0 down on home purchases

Most conventional lenders require at least 5% down, if not 10% or 20% down which is not possible for many Veterans and Military families. FHA loans require a 3.5% down payment. Because a VA Mortgage Loan is guaranteed to the lender by the federal government through the Department of Veterans affairs, VA Home Loans do not require a down payment.

VA Loans Do Not Have Mortgage Insurance

Even with 100% financing, a VA Mortgage Loan does not have any mortgage insurance (PMI) as part of the monthly payment. Conventional loans with less than 20% down and FHA loans both have expensive mortgage insurance that can cost several hundred dollars per month.

Competitive VA Loan Rates

Because VA Mortgage Loans are guaranteed by the Department of Veterans Affairs, the risk level associated with default is much lower, and thus the interest rates on a VA Loan are usually lower than a conventional loan with less than 20% down payment. FHA Loans are backed by the government as well and usually have an interest rate very close to that of a VA Loan.

Flexible Qualification Requirements

VA Mortgage Loan guidelines are more flexible than many other loan programs. Each lender has their own standards, but because the VA Loan is guaranteed by the government, most lenders have lower minimum credit score and credit history requirements, making VA Loans easier to qualify for.