The Department of Veteran Affairs 

VA Loans 

This is one of the most flexible lending options available today. This program works differently than other loan programs. The Department of Veteran Affairs will repay a portion which is about a quarter of every loan it guarantees, if the borrower were to default. This program gives VA approved lenders protection when lending to military borrowers. Generally the interest rates and terms are more competitive for veterans that quality for this program. 

Key Takeaways 

  • Competitive interest rates, usually lower than conventional loan rates. 

  • Sellers pay up to 6 % of closing costs and concessions. 

  • Allows higher debt-to-income ratios than many other loans. 

  • Minimum down payment as low as 0%.

  • No PMI (Primary Mortgage Insurance) required. 

  • Streamlined refinancing usually requiring no additional underwriting.