> VA Loan Pros
* Here are some of the major advantages of the VA home loan program:
* No down payment: This is such a significant benefit. Qualified borrowers in most parts of the country can purchase homes worth up to $417,000 without making a down payment. FHA loans typically require a 3.5 percent minimum down payment, and for many conventional loans it’s a 5 percent minimum. On a $175,000 home purchase, that’s a $6,125 down payment for FHA and a $8,750 for conventional.
* No private mortgage insurance (PMI): This is required for conventional borrowers who can’t put down at least 20 percent. FHA borrowers have a couple forms of mortgage insurance, one that’s paid up front at the time of purchase and another that’s paid monthly.
> VA Loan Cons
* Now here are some of the potential drawbacks of the VA loan:
* VA Funding Fee: All VA loans come with a mandatory VA Funding Fee charged by the VA. This fee goes directly to the agency and helps keep the VA home loan program running for future generations. It’s a cost you can finance into the loan, and borrowers with service-connected disabilities are exempt from paying the fee. But this isn’t something you’ll pay on a conventional loan or FHA loan.
* They’re intended for primary residences: This isn’t a loan program you can use to purchase a second home or an investment property.
Reference Link: http://vastreamlinemortgage.net/