Conventional Vs. VA - Benefits Of a VA Loan

  • Reduced or NO Down Payment

  • Reduced or No down payment required for loan amounts up to $417,000!

  • Reduced Down Payments on Jumbo Loans over $417,000

Down Payment Savings

Loan Amount

0% Down

5% Down

10% Down

20% Down

$100,000

$0

$5,000

$10,000

$20,000

$200,000

$0

$10,000

$20,000

$40,000

$300,000

$0

$15,000

$30,000

$60,000

$400,000

$0

$20,000

$40,000

$80,000

 

  • No Mortgage Insurance

  • VA Mortgage Loans do not monthly mortgage insurance.  Other loans with a loan amount greater than 80% of the value of the property require mortgage insurance.

Mortgage Insurance – PMI - Savings

Loan Amount

Monthly PMI Savings

$100,000

$46.67

$200,000

$103.33

$300,000

$140.00

$400,000

$186.67

Assumptions:  95% LTV, 750 Credit Score, SFH, 30% Coverage, 30 Year Fixed, Approve/Eligible, Primary Residence, Florida

  • Low Interest Rates

    • Interest Rates on VA Mortgages are often lower than those for conventional loans.

    • Especially for borrowers with low credit scores

  • Easier to Qualify

  • Lower Credit Scores -  As low as 550 qualifying credit score.*

  • Limited Credit History - Non-traditional trade lines, such as utility bills, rent history, and other accounts that are not included on traditional credit reports may be considered in supporting a determination of a borrower’s ability to repay the loan.

  • Adverse Credit- Shorter waiting periods after significant derogatory credit events before eligibility for financing is restored.

    • Bankruptcy – 2 years (7), 13 – 1 year in as long as 12 months payments on time

    • Short-/Deed-in-Lieu – 2 years

    • Foreclosure – 2 years

  • Higher Debt-to-Income Ratios

    • Up to 55% (or higher) debt ratios permitted.  Significantly exceeding what is permitted under conventional loan guidelines.

  • High LTV Limits on Refinance Transactions

    • Refinance up to 100% or greater of your Property’s Value

    • Cash-out Refinances up to 85% Loan-To-Value

  • VA Mortgage Loans are assumable

  • No Prepayment Penalty

  • Seller Contributions to your closing costs of up to 6% of the purchase price