The VA Home Loan is the very best mortgage available today to those who have earned the benefit.When comparing the pros and cons of both the VA Loan and Conventional Loan you will quickly find out that the VA Loan cannot be beat.
VA Loans require 0% down payment in most cases. Conventional loans generally require at least a 5% down payment and sometimes up to 20% Down Payments
The Federal Government guarantees VA Home Loans thus protecting the lender in the case of default.Conventional Loans do not have the same Federal Government Guarantee and require private mortgage insurance for loans with less than a 20% down payment.
VA Loan interest rates are typically lower than conventional rates because of their government guarantee.Since the government guarantees VA Home Loans, lenders have the ability to offer lower rates than are typically offered for conventional loans. For borrowers with less than perfect credit history VA Home Loan interest rates can be significantly lower than conventional loan rates.
Because of the government guarantee, VA Loans are much easier to qualify for by having less restrictive credit and income requirements.Conventional Loans have strict income, asset, and credit requirement that can keep many borrowers from qualifying.
You can obtain a VA Loan for up to $1,000,000!Conventional loans are limited to $417,000.For borrowers who are purchasing in a high cost area (see VA County Loan Limits), you can obtain a VA Home Loan for up to the County Loan Limit with 0% Down!