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Veterans Administration (VA) loans are a fantastic way to obtain home financing for America’s servicemen and women. VA loans are insured by the Veterans Administration allowing private lenders to lend up to 100% of the purchase price. There are several significant advantages VA loans have over other government or conventional loans. My goal is to help the reader have a better understanding of the VA loan.

VA Loan Benefits

There are several benefits to VA loans as apposed to other types of financing.

  1. As mentioned earlier, a Veteran, Active Military, or National Guard can borrow up to 100% of the purchase price or appraised value whichever is less.
  2. VA loans do not require monthly mortgage insurance (MI), which is a big savings to the monthly payment.
  3. There are restrictions on certain types of fees a lender can charge a Veteran at closing, which results in additional savings to the borrower.
  4. Because the loan program is backed by the Veterans Administration, a VA loan interest rate will usually be lower than conventional rates, but similar to FHA rates, thus qualified Veterans who want to purchase a home can enjoy lower payments over the life of the loan.

Other VA Loan Features

One downside to VA loans is there is an up front VA Funding fee, similar to the FHA up front mortgage insurance fee, which can be added on top of the mortgage loan. This funding fee will vary depending on Veteran type and whether the borrower is applying for first time or subsequent use of a VA Loan. For more information on this subject and a Funding Fee Chart Click Here.

Lastly, a Veteran must meet credit and income qualifications similar to FHA and other loan types in order to obtain financing. In general, a minimum credit score of 640 and debt to income ratio of 45% or less is required; however there are exceptions to these rules. Veterans, please feel free to us for more information in regards to how you can obtain financing.


We are grateful for the sacrifice our military men and women make for the safety and protection of our country, which is why the VA Loan is and should be one of the most preferred and advantageous loan programs to our brave men and women.