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Why choose a VA loan?
VA loans come with a range of advantages designed to make homeownership more accessible for those who have served:
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No Down Payment: One of the most significant benefits—qualified borrowers can purchase a home with no money down.
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No Private Mortgage Insurance (PMI): Unlike many conventional loans, VA loans don’t require PMI, saving you hundreds each month.
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Competitive Interest Rates: Backed by the government, VA loans typically offer lower rates than conventional mortgages.
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Flexible Credit Requirements: VA loans are more forgiving of past credit issues, making it easier to qualify.
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Limited Closing Costs: The VA limits what lenders can charge, helping reduce out-of-pocket expenses.
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No Prepayment Penalties: Pay off your loan early without any extra fees.
These benefits make VA loans one of the most affordable and accessible options for eligible homebuyers.
Are There Any Downsides to a VA Loan?
While VA loans offer many great benefits, there are a few potential drawbacks to consider:
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VA Funding Fee: Most borrowers pay a one-time funding fee, which helps keep the program running. This fee can be rolled into the loan but adds to the overall cost. The funding fee is waived for borrowers with any VA disability benefits.
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Primary Residence Only: VA loans are only for homes you intend to live in as your primary residence—they can’t be used for investment properties or vacation homes on initial purchase.
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Strict Appraisal Standards: VA appraisals can be more detailed and strict, which may delay the process or limit the types of properties you can buy.
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Not All Lenders Are Equal: Some lenders may not specialize in VA loans, which can affect the quality of service or loan terms offered.
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Loan Limits in Some Cases: While there’s no cap on how much you can borrow, there may be limits on how much the VA guarantees, which could impact larger loan amounts in high-cost areas or when attempting to purchase another VA loan after your first.
Despite these potential downsides, for many eligible buyers, the advantages of a VA loan far outweigh the limitations.
We work with many Veterans and would love to help you too.
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