Today I am going to highlight some of the benefits of why a VA loan could be the right loan for your home purchase or refinance. Principle Home Mortgage, LLC is eligible to do VA loans and have been able to help many Veterans in the State College area and Central PA purchase their homes. The VA program provides significant financial benefits that make home-buying possible for many Veterans who might not otherwise qualify.

No Down Payment

Qualified VA Loan borrowers can purchase up to $417,000 without a down payment in most parts of the country

For conventional and FHA loans, buyers are typically looking at minimum down payment requirements of 5 percent and 3.5 percent, respectively. On a $200,000 mortgage, that's a $10,000 down payment for conventional and a $7,000 down payment for FHA.

The ability to purchase with no down payment means military home-buyers don't have to scrape and stockpile for years and years to pursue a home of their own.

No Private Mortgage Insurance

There is no mortgage insurance with VA loans.

VA loans do come with a mandatory funding fee that goes directly to the Department of Veterans Affairs. Borrowers with a service-connected disability are exempt from paying this fee, which helps keep the program going for future generations.

FHA loans carry both an upfront mortgage insurance premium and annual mortgage insurance. The annual mortgage insurance lasts for the life of the loan. Conventional buyers will pay this monthly cost until they've built up suitable equity, which can take years.

Lower Credit Score Requirements

Credit score requirements have started to thaw, but that hasn't made life significantly easier for many military buyers. The credit benchmarks set by both conventional and FHA lenders can still be tough to hit. Call David “Shane” Whitteker at Principle Home Mortgage, LLC to find out if you qualify with your current score.

If you have had some credit issues in the past please do not hesitate to contact us as we have helped many, many individuals in Pennsylvania and the State College area raise their scores to be able to finance the home of their dreams.

These are just a few of the benefits of a VA loan. If you have a Certificate of eligibility and are interested in purchasing a home or refinancing your current home please call us for more information. Click here for Principle Home Mortgage, LLC contact information.