costs means you can use that money you would have spent on closing costs to move in, make improvements, or buy furniture for your new home.
Easier to qualify
Since VA loans are backed by the U.S. government, the requirements tend to be more flexible, making it easier for veterans to qualify. Debt ratio is higher than FHA and Conventional loans. A steady streamline of higher income is required to meet requirement's.
Lower insurance
You’ll save on insurance as well, as VA loans don’t require private mortgage insurance (PMI), which most lenders require when you make a downpayment of less than 20% of the purchase price. This insurance protects the lender if you default on your loan. Not having to pay PMI can save you hundreds of dollars each month.
No prepayment penalty
With a VA loan, you won’t have any prepayment penalties or early exit fees, no matter when you decide to sell your home. That means you can sell your home at any time during your loan term without worrying about penalties or fees.
Assumable and refinance
Most VA loans are “assumable,” which means they can be transferred to another VA-eligible home buyer. This can be a benefit when the veteran goes to sell their home — especially if interest rates are going up. You can also refinance an existing VA loan into another VA loan using the VA’s Interest Rate Reduction Refinance Loan (IRRRL) program, or switch to a non-VA loan at
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