Empowering Veterans: Benefits of VA Home Loans

For veterans, active-duty service members, and their families, owning a home symbolizes more than just a financial investment—it represents stability, security, and the fulfillment of a cherished dream. Yet, the path to homeownership can seem daunting, particularly when faced with the financial barriers that traditional mortgage loans often include. As a military bank, Armed Forces Bank understands the sacrifices made by our military personnel and their families. We provide support and financial solutions to assist people in understanding the benefits of VA home loans. We believe that everyone should have the chance to purchase the home of their dreams, especially those who have served our country. Let’s take a look at some of the biggest advantages to a VA home loan.

What is a VA home loan?

A VA home loan is a specialized mortgage backed by the U.S. Department of Veterans Affairs. These loans are obtained through privately approved lenders, such as banks and mortgage companies. VA loans are tailored to improve accessibility to homeownership for veterans, active-duty service members, and certain military spouses.

To read up more about VA home loans* and how they work, check out some of our other military mortgage blogs.

Why should I get a VA home loan?

VA home loans* are a valuable resource for military personnel, veterans, and their families. These loans offer several distinct advantages that make them a great option for eligible individuals. Let’s dive a little deeper into some reasons why you should choose a VA home loan over other mortgage options.

No Down Payment Required

One of the biggest advantages of a VA home loan is that you don’t need a down payment. But why is that such a game-changer for people who qualify? Most mortgage programs, like FHA and conventional loans, require at least 3.5% as a down payment. If a home is priced at $250,000, then the down payment is at least $12,500 in most cases! Because VA loans don’t require a down payment, a new homebuyer can achieve their dream of homeownership without draining their savings beforehand. It also opens room in their budget for other expenses that come with buying a home.

Easy to Qualify

Unlike many other loan programs, VA home loans have more lenient guidelines for people to qualify. In fact, factors such as lower credit scores, bankruptcy or foreclosure do not automatically disqualify you from getting a VA loan. Some lenders have their own stances on past credit issues, but VA guidelines do not state a minimum credit score. So, make sure to shop around and find a lender that fits your needs and credit situation. While many homeowners, military and civilian, go through bankruptcies and foreclosures due to many factors, like loss of income or medical emergencies, these setbacks won’t permanently exclude them from buying a home. That means homebuyers with low credit could use a VA loan to buy their dream home in most cases. Don’t worry—a few rocky patches in your financial journey should not impact your homeownership goals.

No Need for Private Mortgage Insurance

One of the advantages of securing a VA home loan is not being required to buy Private Mortgage Insurance (PMI). PMI is a type of insurance that homebuyers might need if they take out a conventional loan with a down payment of less than 20% of the purchase price. It serves to protect the lender, not you, in case you stop paying on your home loan. While PMI can be helpful in qualifying for a conventional loan, it also adds to the overall cost of the loan. However, with VA home loans, which are backed by the U.S. Department of Veterans Affairs, there is no need for PMI. By removing the monthly expense of a PMI, homebuyers who opt for VA loans tend to have more money in their pocket each month.

Why do I want to get a VA home loan with Armed Forces Bank?

Choosing a lender for your VA home loan^* is a big decision. What sets Armed Forces Bank apart from others is our deep understanding of military life. At Armed Forces Bank, we are proud to make serving our nations heroes part of our company’s mission.  With over 80% of our retail associates affiliated with the military, we know the unique challenges that face service members, veterans, and military families.

Our lending team is accredited to handle VA home loans and can help you find the perfect home. By partnering with a bank that prioritizes the well-being and financial success of military personnel, you can confidently pursue your dream of owning a home with the support of a trusted institution like Armed Forces Bank.

Contact one of our Loan Officers or call a branch to get started on making your homeownership dreams a reality.

 

 

Member FDIC

^*Subject to credit approval. VA funding fee may apply. VA loan qualification guidelines apply. Borrowers pay third party fees that include the appraisal fee, title fees, insurance, etc.  Additional restrictions and fees may apply.  VA loans are offered exclusively to qualified military service members.