Costa MesaCosta MesaNewport Beach Mon - Fri 7:00-7:00 +1-949-631-2708 Mon - Fri 7:00-7:00 +1-949-631-2708
Hello@escomortgageadvisors.com
Easy Flo App
Online mortgage application
Talk To
An Expert
Explore
Resources

New home purchase

Purchasing A Home With A VA Loan

A VA Loan Offers Multiple Benefits To First Time Buyers

Purchasing a home is the American dream, and what better way to do so, then with a VA loan.  If you are eligible, a VA loan is most likely the best loan program available, and especially for first time home buyers.
Purchase Home With $0 Down

A VA mortgage is one of the last loan programs available, which allows a borrower to obtain purchase financing up to 100% of the homes value with $0 down.

Over the past few years, lending institutions have tightened their guidelines on conventional loans.  Due to these tighter restrictions, conventional financing requires a higher down payment then in years past.  In many cases, due to a borrower’s less than perfect credit, conventional financing requires a 10% – 20% down payment, pushing home ownership out of the affordability range for many potential buyers.

$0 down can save you a lot.  Conventional loans will require a minimum of 5% down, and up to as much as 10% – 20% down in most cases.  Check out the chart below to see how much you potentially could save from using a VA loan vs. a Conventional loan.

Lower Your Monthly Payment
A VA loan has two main benefits that can significantly lower your monthly payment.

On a VA loan, private mortgage insurance (PMI) is NOT required.  On Conventional financing, Private Mortgage Insurance (PMI) adds an additional monthly expense to your monthly payment, and is required if the borrower finances more than 80% of the appraised value.

Interest rates on a VA loan are typically 0.50% – 1.00% lower than a conventional loan.  The combination of monthly PMI savings and a lower interest rate can significantly lower your monthly payment.

Below is a chart of the estimated monthly payment savings on a VA loan vs. Conventional lending requirements.

Loan Amount

0.50% Rate Reduction

PMI Savings

Estimated Monthly Savings

$150,000

$

$

$

$250,000

$

$

$

$350,000

$

$

$

$450,000

$

$

$

Easier Qualifying Guidelines

The qualification standards are more flexible for a VA loan.

A VA loan is insured by the government through a guarantee, which protects lenders against loss in the event of foreclosure, up to the amount of the guaranty (25% of the Freddie Mac Conforming loan limit).  This is what allows a veteran more favorable financing terms on a VA loan vs. a Conventional loan.

If your credit score is low, and you would like information on how to repair your credit score to become eligible for a VA loan, then click on the following link VA Loans For Credit Challenged Individuals  .

Find out if a VA loan is right for you!  Please take two minutes to provide us with some information   .  There is NO RISK and NO OBLIGATION.  One of our certified Military Housing Specialist will contact you at your request to see what you can qualify for.

See If A VA Loan Can Work For You

What’s The Next Step?

Find out if a VA loan is right for you!  Please take two minutes to provide us with some information   .  There is NO RISK and NO OBLIGATION.  One of our certified Military Housing Specialist will contact you at your request to see what you can qualify for.

It’s As Easy as 1-2-3

To get started, please take two minutes to provide us with some information  .  A certified Military Housing Specialist will contact you at your request.

Leave a Reply