Four benefits of a VA loan program?

How does VA compare to other loan programs? – VA is one of the best options out there for qualified veterans. No money down, easier qualification guidelines, flexibility and no mortgage insurance. The list goes on as to the many benefits of a VA home loan. Here are the four best benefits in comparison to other loan programs.

1. Zero down payment required – this clearly is the biggest feature because the borrower can purchase a home without having to put money towards a down payment. Over 80% of the veterans who use their VA home loan benefit put zero down to purchase. Some use the zero down because they have to while others do so because they want to.

2. No Private Mortgage Insurance (PMI) – Not having to pay monthly PMI is a huge benefit. In the lending market today, if your down payment on a home is less than 20% of the appraised value or sale price, you must obtain private mortgage insurance.  Putting zero down and paying nothing for PMI is much nicer on the wallet and adds to the monthly cash flow.

3. The VA loan is assumable –  when it comes time to sell the property, a new home buyer can take over the obligation of the seller’s loan with no change in loan terms. A VA home loan can be assumed by any “credit worthy borrower”. This includes non-Veterans and buyers who do not intend to occupy the property. Therefore, an investor can take over the payments and they can pay the Veteran cash for the equity.

4. There is lower risk due to the government guaranty so lower interest rates – the interest rate on a VA home loan is often better than conventional loans or FHA by as much as .025%. Because VA home loans have government backing and a 25% guarantee, banks have little downside risk or lower risk.

This information is brought to you by Lorraine Santirosa a San Diego Realtor specializing in helping Veterans and active duty military buy and sell homes. For more information or help with buying a home in San Diego call 619-248-5484 or visit

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According to the California Department of Veterans Affairs, San Diego County is home to approximately 265,000 veterans as of 2007.

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