VA Loans are one of the very few loan programs that allow you to borrower 100% of the home’s purchase price. Most programs require a minimum of 3.5% - 10% down payment to qualify for financing.
Without at least a 20% down payment, all other home loan programs require the borrower to pay mortgage insurance. This insurance doesn’t protect the borrower, rather insures the lender in case of mortgage default.
Nobody likes paying closing costs. Fortunately for veterans, a good portion of these costs are waived. On average, a VA buyer can save anywhere from $1500 - $2000 in closing costs compared to using other loan programs.
The goal of the VA program is to make it easier for a veteran to become a homeowner. With this in mind, the typical barriers to homeownership are dramatically reduced with a VA Loan.
Those who don’t qualify for other loan programs are more likely to be eligible for a VA Loan.
For 2020, the maximum VA loan amount with no down payment for veterans and service members with full entitlement is NO LIMIT for all islands. That means if you can afford the payment and get pre-approved for a $2.5 million dollar home, then you can buy one using a VA home loan with zero down.
As a VA mortgage holder, you may automatically qualify for a Streamline Refinance, also know as the Interest Rate Reduction Refinance Loan (IRRRL).
With this streamlined process, there is less paperwork involved and the cost to refinance your home is significantly reduced.