Benefits Of The VA House Loan

If you can not afford a down-payment and closing costs, you may want to look into a VA house loan. Unlike conventional or FHA loans, when you buy a home to live in using your VA loan, there is no requirement for a down payment or closing costs if you are a veteran.

This can add up to massive savings. In some cases a down payment and closing costs can end up costing a buyer $100,000 or more.

The good news is that if you are former military or active duty, you may be able to get a home and even receive a check when you close escrow.

How is this possible? When you apply for a VA loan directly through VA home loan centers, you can avoid the payment of closing costs and a down payment. In fact VA home loan centers will provide an agent free of charge to negotiate with your seller to pay all of these costs for you.

To make the process easier, VA home loan centers is now offering an easy online application.

What Does a VA Home Loan Have to Offer Me? Number one on the list of what a VA loan can offer you is buyer protection. You will always be secure with every transaction done through the home that you're looking to purchase. You get maximum security with every step of purchasing a home. The best help, advice or info is only a call or click away, which is always a perk if you're new to the home buying process.

Fewer closing costs are also one of the many things you will get when purchasing using a VA home loan. This is because you're not going through a traditional bank to apply for a mortgage. Using a VA loan will get you a house without having to pay out of pocket for all of the closing costs associated with purchasing a home. For a VA loan, there is a limit to what closing costs the buyer can pay. If the contract is writen in your favor, you can have all of your closing costs paid for by the seller. The way to do this is to ask for a seller credit at the time of purchase.

When you purchase a home by using a VA home loan, the home is automatically inspected and certified by using one of the VA appraisers to let you know what kind of condition the house is in and the fair market value of the home. This allows you to know the value of the home, and if it is in the condition the sellers say it is in. With other loans (conventional, FHA, etc) you will only get an appraisal.

There are no prepayment penalties if you would like to pay the loan off early. The investors of a VA loan welcome early payment, and encourage you to do so without having to pay a fee in order to do so.

The interest rates for the VA home loan are always fixed and never adjustable, so you do not have to worry about suprise payments because of added interest to the loan.

There is no down payment required. On a conventional oans, you must pay a 5-20% down payment.

Mortgage insurance is not need for a VA loan. Mortgage insurance is required for FHA and conventional loans, but not for the VA loan.

The last, but not least, thing that makes VA loans special is that there are no private mortgage insurance companies or PMI to work with throughout the entire transaction.

To get the best service and to avoid bank fees, work directly with VA home loan centers. You can be in your home in weeks when choosing to go with a VA home loan center, and you can be glad you did when comparing the costs of the loan to traditional mortgages.


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To apply for a VA loan, visit or call VA Loans / VA HLC. Philip Georgiades is the Chief VA Loans Steward for San Diego VA Loan Center.