VA Loan v. Conventional Mortgage
Buying A Home with a VA Loan
The VA Loan is one of the best mortgages available today. Compare it with conventional or FHA loans and you'll see that it can't be beat. Not only is the VA Loan one of the last $0 down options out there, it also doesn't charge the costly and unnecessary private mortgage insurance (PMI) that other loans make you pay if you don't put 20 percent down. Combine those factors with great low rates and flexible qualification, and you've got one amazing benefit.
The Perfect Choice
At A Glance
0% Down
Low Rates
No PMI
Why a VA Loan is Perfect for Homebuyers
Military homebuyers have access to one of the most unique and powerful loan programs ever created. The
VA Loan program has helped more than 18 million veterans become homeowners since World War II.
VA Loans
Conventional Loans
0% Down
VA Loans are some of the last 0% down home loans available on the market today. See how much you can save on the chart below.
20% Down
Conventional loans require down payments ranging from 5%- 20% to secure a home loan, pushing them out of reach for many borrowers.
No PMI
Since VA Loans are government backed, banks do not require you to have Private Mortgage Insurance.
PMI Required
Private Mortgage Insurance is required for borrowers who finance more than 80% of their home value, tacking on an additional monthly expense.
Lower Interest Rates
The VA guaranty gives gives lenders a greater degree of safety and flexibility. VA loans typically feature lower rates than conventional mortgages.
Higher Interest Rates
Without government backing, banks are taking on more risk. More risk often results in a higher interest rate on your home loan.
Easier to Qualify
Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans, making them easier to obtain.
Standard Qualification
A VA Loan has less strict requirements than many conventional loans.
VA vs. Conventional Loans At a Glance
Conventional
VA Loans
No down payment
No monthly mortgage insurance
No prepayment penalty
Benefits exclusive to military
First-time home buying
Help from VA loan specialists
How much can no down payment save you?
These flexible, low-cost loans are more popular than ever before, and there's little secret why:
Qualified veterans can purchase a home with no money down.
Saving money and building credit can be difficult for service members constantly on the move. Government-backed VA loans allow qualified veterans to finance 100% of a home's value. Flexible income and credit requirements for VA loans open homeownership to a wide range of veterans and active duty service members.
Have some money set aside and want to make a down payment? No problem. VA loans let you choose the option that's best for you.
VA Loan Savings at Closing
Loan Amount
0%
Down
5%
Down
10%
Down
20%
Down
$150,000
$0
$7,500
$15,000
$30,000
$250,000
$0
$12,500
$25,000
$50,000
$350,000
$0
$17,500
$35,000
$70,000
$450,000
$0
$22,500
$45,000
$90,000
(See important notes at bottom of page)
Save with Lower Interest Rates
Not only can you buy a home with $0 down, but VA loans also have low monthly payments, great low interest rates and no pre-payment penalties.
This chart shows the estimated amounts you could save by qualifying for a loan that's just half or a full percentage point lower.
Home Price
150k
250k
350k
450k
Savings from a 0.5% reduction in interest
$14,760
$24,480
$34,200
$43,920
Savings from a 1% reduction in interest
$28,800
$48,240
$67,320
$86,400
(Assumes 10% down on loan; see additional notes at bottom of page)
Save Thousands More with No PMI
VA loans also have the advantage of not requiring private mortgage insurance (PMI), meaning you'll save even more each month.
Amount and Interest Paid
Total PMI Savings
150K 4.5%
$3,825.00
250K 4.5%
$6,843.75
350K 4.5%
$8,925.00
450K 4.5%
$12,318.75
(Assumes 10% down and constant PMI rates of .5%;
see additional notes at bottom of page)
Start building equity in a home and have something to show for your money each month.
Save even more: You can pay just the minimum each month, or pay a little extra and save on interest. It's up to you.
The Perfect Choice
At A Glance
0% Down
Low Rates
No PMI
Get the Home You Want
The VA backs loans in most price ranges. A VA Loan can help whether
you're looking for a single-family residence, duplex, condo or townhome.
Easier to Qualify
A VA Loan has less strict requirements than many conventional loans,
making it a great option for first-time homebuyers or those with
less-than-perfect credit. Our specialists can also work with you to set
up a road map to homeownership.
A Company You Can Trust
Because we're not a government agency, we're required to go through a
strict qualification process. That, combined with our A+ Better Business
Bureau rating, gives you the confidence you'll be working with a reputable
and respected company.
IMPORTANT NOTES: Savings and interest rates shown here are for illustrative purposes only and
may vary based on a variety of factors. All loans require approval and proof of eligibility and are
subject to the complete terms and conditions outlined in the loan agreement documents.
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Testimonials
"We are so happy and couldn't have asked for a better team of people to work with ... anytime we had a question, they were right there with an answer or advice."
- Danny Hass (Texas)
"I had the most incredibly wonderful home buying experience. Each and every person I talked to was just so very kind and professional!"
- Carole Parkmond (Connecticut)
"You made you feel like family and someone who cares about me, and that made it that much more enjoyable."
- Todd P. (Connecticut)
"I am and was very impressed by how easy it was to get in touch with her and that she was able to make you feel like you were her only client at the time."
- Jerry Conner (Michigan)
More Testimonials
Loan Info Video Library
The VA Loan Program
More information for families interested in a VA Loan and how it can help save them money.
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VA v. Conventional
What's the difference?
View our VA Guaranteed Mortgage vs. Conventional loan comparison chart.
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