For veterans and military families, the VA Loan program is the best type of loan. VA loans are backed by the government. These loans are flexible and the rates are competitive.

Veterans, members of the military, reservists, and National Guard members are eligible to apply for this type of loan. Spouses of military members who died while on active duty may also apply.

Benefits of VA Loans

• Low interest rates. The loan’s interest rates are computed based on risks assumed by the financing institutions. Because VA Loans are backed by the Department of Veteran Affairs, it’s less risky for banks to finance VA Loans. Hence, VA Loans’ interest rates are lower by 1 percent than conventional rates.

• No downpayment. One of the best things about VA Loans is that they don’t require downpayments.

• No pre-payment penalty. For many loan types, there is a fee if you pay off all or part of your mortgage early. With a VA Loan, borrowers can pay off the loan without worrying about pre-payment penalty.

• No need for mortgage insurance. Unlike FHA and conventional loans, VA Loans do not require mortgage insurance. With this, the borrowers can save more every month.

With VA Loans’ no downpayment and mortgage insurance requirements, and with its flexible guidelines, active-duty military personnel, veterans, certain other groups can own a home at an affordable cost.

Monthly saving is guaranteed with VA Loans’ no downpayment and mortgage insurance requirements.