Friday, November 11, 2022 / by Laura Larson
Begin the home-buying process by being aware of the advantages and benefits of VA loans.
How Do VA Loans Work?
For the men and women who have served our country in the military, VA home loans offer an accessible way to become a homeowner. VA loans help Servicemembers, Veterans, and eligible surviving spouses to become homeowners. VA provides a home loan guarantee benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal use.
VA Home Loan Program Benefits
In addition to assisting qualified purchasers in obtaining advantageous mortgages, VA loans come along with additional advantages:
- Eligible borrowers can frequently buy a house with no money down.
- Private Mortgage Insurance (PMI) is required for many other loans with down payments under 20%. Veterans are able to save on their monthly bills because VA loans don't require PMI.
For a great majority of military homeowners, VA loans provided the most powerful lending program available on the market. These loans are flexible, require no down payment, and have helped more than 24 million military personnel become homeowners since the end of WW2.
John Bell, Acting Executive Director of the Department of Veterans Affairs Loan Guarantee Service, also explains the power of the program: “It provides early ownership for many people that would not have that opportunity, to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long-term financial security by being able to own a house and let that equity grow.”