Conventional Vs. VA - Benefits Of a VA Loan
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Reduced or NO Down Payment
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Reduced or No down payment required for loan amounts up to $417,000!
- Reduced Down Payments on Jumbo Loans over $417,000
Down Payment Savings
|
Loan Amount |
0% Down |
5% Down |
10% Down |
20% Down |
|---|---|---|---|---|
|
$100,000 |
$0 |
$5,000 |
$10,000 |
$20,000 |
|
$200,000 |
$0 |
$10,000 |
$20,000 |
$40,000 |
|
$300,000 |
$0 |
$15,000 |
$30,000 |
$60,000 |
|
$400,000 |
$0 |
$20,000 |
$40,000 |
$80,000 |
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No Mortgage Insurance
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VA Mortgage Loans do not monthly mortgage insurance. Other loans with a loan amount greater than 80% of the value of the property require mortgage insurance.
Mortgage Insurance – PMI - Savings
|
Loan Amount |
Monthly PMI Savings |
|---|---|
|
$100,000 |
$46.67 |
|
$200,000 |
$103.33 |
|
$300,000 |
$140.00 |
|
$400,000 |
$186.67 |
Assumptions: 95% LTV, 750 Credit Score, SFH, 30% Coverage, 30 Year Fixed, Approve/Eligible, Primary Residence, Florida
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Low Interest Rates
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Interest Rates on VA Mortgages are often lower than those for conventional loans.
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Especially for borrowers with low credit scores
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Easier to Qualify
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Lower Credit Scores - As low as 550 qualifying credit score.*
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Limited Credit History - Non-traditional trade lines, such as utility bills, rent history, and other accounts that are not included on traditional credit reports may be considered in supporting a determination of a borrower’s ability to repay the loan.
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Adverse Credit- Shorter waiting periods after significant derogatory credit events before eligibility for financing is restored.
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Bankruptcy – 2 years (7), 13 – 1 year in as long as 12 months payments on time
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Short-/Deed-in-Lieu – 2 years
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Foreclosure – 2 years
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Higher Debt-to-Income Ratios
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Up to 55% (or higher) debt ratios permitted. Significantly exceeding what is permitted under conventional loan guidelines.
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High LTV Limits on Refinance Transactions
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Refinance up to 100% or greater of your Property’s Value
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Cash-out Refinances up to 85% Loan-To-Value
-
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VA Mortgage Loans are assumable
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No Prepayment Penalty
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Seller Contributions to your closing costs of up to 6% of the purchase price
