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 is one of the few remaining no down payment mortgage programs and is only available to eligible Veterans.

VA Allows $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 requires a 3.5% down payment. Because a VA Mortgage is guaranteed to the lender by the federal government through the Department of Veterans affairs, VA mortgages do not require a down payment.

VA Loans Do Not Have Mortgage Insurance

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

Competitive VA Rates

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

Flexible Qualification Requirements

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