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The VA loan is a government sponsored 30-year fixed rate mortgage loan offered only to veterans or their widows. The single most important benefit of a VA loan is that it offers is a zero downpayment option. VA loans are available in both fixed and adjustable rate programs.
Many Veterans knowing that they qualify for a VA loan do not investigate other programs. This may be an error in many cases, just because a program is available to you does not mean its the best program for you. The interest rate charged for a VA loan is typically slightly higher than that of a standard 30-year fixed program. If the Veteran can put a some of their own funds toward the purchase of the home he/she should be able to find a program with a lower interest rate.
THE BENFITS OF A VA LOAN
* No downpayment options available.
* Credit requirements are usually a little lower than conventional programs.
* Has a very streamlined refinance option for Rate Reduction Refinance loans.
THE DETRACTORS OF A VA LOAN
* Typically charges slightly higher interest rate.
* The approval process is typically 1-2 weeks longer than a conventional program.
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