1 Thought on We’re eligible for a VA home loan. Is it really that good, or is there something better?
  1. Reply
    January 31, 2013 at 5:28 pm

    The answer to your question is… It depends. Are you purchasing a home or refinancing? If you are purchasing a home the advantage of a VA loan is that it will allow you to finance into the purchase price much of the closing costs. This means that you will either need very little or no money at settlement and no money down (VA does 100% financing plus allowable closing costs). There are conventional loans that offer similar terms but the guidelines are more stringent when applied towards credit and liquid assetts. VA guarantees the loan to your mortgage lender so lenders can afford to relax credit standards to some extent. All of that being said, if you have 10% or more to use as a downpayment you will find conventional financing to be a better alternative. Fannie and Freddie have more financing option and quite frankly, better rates than VA. This topic is a bit too broad to continue in this forum but I hope this helps.

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