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Conventional Vs. VA – Benefits Of a VA Loan

  • Reduced or NO Down Payment
  • 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

 

  • No Mortgage Insurance
  • 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

  • Low Interest Rates
    • Interest Rates on VA Mortgages are often lower than those for conventional loans.
    • Especially for borrowers with low credit scores
  • Easier to Qualify
  • Lower Credit Scores –  As low as 550 qualifying credit score.*
  • 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.
  • Adverse Credit- Shorter waiting periods after significant derogatory credit events before eligibility for financing is restored.
    • Bankruptcy – 2 years (7), 13 – 1 year in as long as 12 months payments on time
    • Short-/Deed-in-Lieu – 2 years
    • Foreclosure – 2 years
  • Higher Debt-to-Income Ratios
    • Up to 55% (or higher) debt ratios permitted.  Significantly exceeding what is permitted under conventional loan guidelines.
  • High LTV Limits on Refinance Transactions
    • Refinance up to 100% or greater of your Property’s Value
    • Cash-out Refinances up to 85% Loan-To-Value
  • VA Mortgage Loans are assumable
  • No Prepayment Penalty
  • Seller Contributions to your closing costs of up to 6% of the purchase price