What are the Benefits of a VA Loan?
The VA loan is one of the best – if not the best loan product available. Here are a few reasons why:
- ZERO down payment is required up to the county limit ($562,350 in San Diego).
- Credit guidelines are much more flexible – no credit score requirement by VA, but many lenders require FICO scores of a min between 580-620.
- There is NEVER any mortgage insurance on a VA loan.
- Assumable – a VA loan can be transferred to a new eligible borrower.
- A non military spouse’s income can be used on a VA Loan.
- VA Loans allow for a higher debt to income ratio (DTI), allowing a borrower to qualify for a higher loan amount.
- VA Loans CAN be used for jumbo purchases. A borrower has to put down 25% over the local ZERO down limit.
- The VA Loan can be used more than once.
- If you are disabled veteran and receive compensation, there is no funding fee – ever on your VA Loan
- For active duty military, Basic Allowance for Housing (BAH) is not taxable
- Mortgage interest, property taxes, and property insurance are all tax deductible (YES, THIS IS ESSENTIALLY A DOUBLE DEDUCTION WHEN PAID WITH TAX FREE BAH)
- While the VA does not offer loans, it insures them, and most major banks are VA approved VA mortgage lenders
- VA mortgages offer the flexibility of 30 year fixed, 15 year fixed, adjustable rate mortgages as well a variety of terms.
- A VA loan can be used for almost any detached home, most condos and town homes, and even some manufactured homes (must own the land).