With no down-payment a VA Homes mortgage allows you to buy a home for up to $417,000(more in some areas).

Although there are some $0 down-payment conventional loan programs available, Conventional loans typically require an average down-payment of 5% -20%. the interest rate on these $0 down conventional programs is also generally higher and the programs are entirely credit score based. This is not the case with VA Homes mortgages. Eligibility for a VA Homes mortgage is not based on your credit score and you pay the same low rate whether you are making a 5% down-payment or no down-payment at all.

Conforming conventional loans generally require you to have mortgage insurance if you are making less than a 20% down-payment.

VA Homes mortgages do not require you to have mortgage insurance. Comparing a VA Homes mortgage to a conventional loan that requires mortgage insurance you will save what could be hundreds each month over a conventional loan.

Because the VA does not have minimum credit requirements, and offers up a 25% guarantee on VA Homes mortgages, lenders are more willing to on a borrower who doesn’t meet their ideal credit profile.

If you have less than perfect credit you are likely to get a lower rate with a VA Homes mortgage than with a conventional loan. Once again a VA Homes mortgage offers options that do not exist with a conventional loan.

A VA Homes mortgage is assumable. Most people don’t realize that a VA Homes mortgage can be passed from one eligible party to another.

This helps in a few ways. First, a home that is under a VA Homes mortgage can be passed down to subsequent generations. This is a great thing for many service men and women who’s parents also served faithfully in the armed forces. Second, a great interest rate can be passed from one eligible vet to another. If the VA Homes mortgage was taken out during a period of very low rates, a subsequent buyer can assume the payments at the much lower rate.

Prepayment penalties are a thing of the past with a VA Homes mortgage.

With a VA Homes mortgage you can refinance or sell your home at any time without having to pay a penalty. Because a VA Homes mortgage has no prepayment penalty, borrowers have greater flexibility when they need it, not when the lender says they can have it. This is very important for active duty military families who move with regular frequency.

Anyone who establishes a VA homes mortgage needs to be able to make timely payments.

During the qualification process they lender assesses your ability to repay the VA Homes mortgage. Perhaps one of the more overlooked aspects of a VA Homes mortgage is that they allow you to have a higher debt ratio than conventional loans. The debt ratio is used to evaluate the amount of payment responsibilities that you have outside of your housing costs. For most conventional loans you must have a debt ratio below 36%. It will be easier to qualify for home with a VA Homes mortgage if your debt ratio exceeds the standard 36%.

A conventional loan only allows the seller to pay your closing cost up to 3% of the loan amount, but with a VA Homes mortgage the seller is allowed to pay all of your closing cost up to 6% of the loan amount.

That can mean thousands of dollars in out of pocket savings. Because of the ability to finance out to 100% with a VA Homes mortgage, homes can be purchased with zero out of pocket expenses. Imagine not being responsible for paying thousands of dollars at the closing table to move into your new home. VA homes mortgages have made this dream a reality.

Currently a VA Homes mortgage is the only type of loan that allows you to drop your interest rate without having to go through an appraisal.

When you already have a VA Homes mortgage a streamline can used to refinance to a lower interest rate and save on the monthly payments. And if rates continue to fall you can do another streamline refinance of the VA Homes mortgage.

A great option for a borrower who has lots of equity in their home, but may not have perfect credit is a “cash out” refinance of their VA homes mortgage.

With a “cash-out” refinance of your VA Homes mortgage you can take out equity (up to 90% in most cases) to consolidate debts and make improvements to the home. With a “cash-out” refinance of the VA Homes mortgage those who might not be eligible for a traditional home improvement or debt consolidation loan, now can make those long needed home improvements or combine their debts into one easy payment.

With the flexibility afforded with a VA Homes mortgage borrowers are better able to choose the program that is right for them.

A VA Homes mortgage can be either a fixed rate or a Hybrid ARM. Maybe your duty station requires a 5 year stay. A 5/1 Hybrid ARM suits your situation perfectly. If you are buying your dream home a low fixed rate for either 15 or 30 years is the answer for you. Should you be planning to transfer in the next 3 years a 3/1 Hybrid ARM is the solution. Whatever the situation a VA Homes mortgage has flexible options to suit the needs of today’s eligible veterans.

Currently interest rates are at lows never before seen.

There has never been a better time to get your VA Homes mortgage. A loan specialist can help with all your VA homes mortgage needs.