There is a lot of misinformation about VA loans which leads many eligible borrowers to use other mortgage programs. Let's take a look at both the advantages and disadvantages of VA loans so you can decide for yourself.

1. VA Loans
Advantages Vs. Disadvantages

2. VA Loans
The VA loan program has remained
consistent through the years. As a program
designed as a military personnel benefit, it
helps eligible veterans become
homeowners. However, many will say that
the VA loan program has both advantages
and disadvantages.

3. Advantages of VA Loans
1. Competitive VA Mortgage Rates
Since VA loans are guaranteed, lenders are
able to offer very competitive rates that are
usually lower than conventional rates.

4. Advantages cont...
2. VA does not set credit score minimum
The VA does not set a minimum credit
score, however, lenders may set their own
guidelines that include a minimum credit
score.

5. Advantages cont...
3. VA Loans do not require a down payment
The VA loan program has remained
consistent and continues to offer a no down
payment loan. A down payment is only
required when the purchase price exceeds
the appraised value.

6. Advantages cont...
4. Closing costs are limited
The VA protects borrowers by putting limits
on allowable closing costs. This reduces the
financial burden to their veterans.

7. Advantages cont...
5. Private Mortgage Insurance is not needed
Even with a no down payment 100%
financed loan, VA loans do not require
private mortgage insurance.

8. Advantages cont...
6. VA Streamline Refinance
Homeowners can refinance without the need
for documentation, appraisal or credit
qualifying. The IRRRL is a simple VA to VA
refinance.

9. Advantages cont...
7. Seller paid closing costs are allowed.
8. Seller concessions are allowed. These
can be used to pay off things such as a
borrower’s debts.

10. Advantages cont...
9. VA loans do not have a prepayment
penalty fee.
10. VA loans are assumable, a benefit for
both the seller and the borrower.

11. Advantages cont...
11. A VA refinance with cash-out is
available.
12. VA provides assistance to borrowers
with VA loans in the event of a default due to
a temporary financial situation.

12. Disadvantages of a VA Loan
1. Lack of knowledge about the benefits of a
VA loan has led some borrowers to
choose a different type of loan.
2. Lack of knowledge leads many sellers to
turn away from borrowers who are using VA
loans for financing.

13. Disadvantages continued...
3. Some borrowers are concerned about the
VA funding fee without knowing that this can
be financed into the loan.
4. Borrowers choose any lender, but not all
lenders know the VA guidelines and can
lead a borrower astray.

14. Conclusion
There are many more advantages than
disadvantages to a VA loan. VA lending has
hit record highs in recent years as more
borrowers find out about the program. A key
factor to a successful VA loan is working
with a knowledgeable and experienced VA
lender who can put you into the best

15. cont...
VA loan available.
For more information, contact
Brian Thomas at 1-888-913-5531 or visit:
http://veteranhomefinancing.com