5 Financial Benefits of VA Home Loans

The VA loan’s strength stems from several important financial perks not generally offered in other mortgage types. This historic benefit program has aided in realizing the homeownership dream for millions of Veterans, service personnel, and military families. Consequently, VA loan use has increased significantly since the Great Recession, and these government-backed loans are the most excellent mortgage options available today.

1.  There are Several Types of VA Mortgages

A VA loan may have a fixed or adjustable interest rate. Additionally, a VA loan may be used to purchase a house, condo, newly constructed home, prefabricated home, duplex, or another form of property.

Alternatively, it may be used to refinance an existing mortgage, make home repairs or additions, or make your house more energy-efficient. You have an option. A VA–approved lender, can assist you in making this decision.

The single most significant advantage of a VA loan is that qualifying Veterans may buy without making a down payment. This considerable benefit enables Veterans and military members to purchase VA homes for sale without having to save for the customary lump-sum payment.

2.  No Down Payment

The minimum down payment on an FHA loan is 3.5 percent, whereas the minimum down payment for conventional financing is often 5%. A military applicant would require $8,700 in cash for an FHA loan and $12,500 for a typical traditional loan on a $250,000 mortgage. For the ordinary military borrower, this may be substantial amounts of money.

Saving money and establishing credit may be challenging for military personnel who are frequently on the move. With a VA loan, qualifying borrowers may finance up to 100% of the value of their house without making a down payment.

3.  Foreclosure and Insolvency

These financial setbacks do not automatically eliminate your eligibility for a VA loan. Even if you’re two years away from a foreclosure, short sale, or bankruptcy, you may qualify for a VA home loan. Veterans who petition for Chapter 13 bankruptcy protection may be eligible one year after filing. Continue reading to learn more about obtaining a VA loan after foreclosure. Homebuyers seeking standard or FHA financing may discover much lengthier waiting times. Even veterans who have defaulted on a VA-backed mortgage may still be eligible for another.

4.  VA Loans Are Versatile

The VA is quite adaptable! The VA enables veterans to purchase a variety of property types via various financing options. Veterans have the option of buying a conventional home, condo, prefabricated home with energy-efficient features.

Veterans purchasing a home that requires energy-efficient improvements may increase the loan amount by up to $6,000. The VA states that the veteran anticipates saving money on utilities by installing energy-efficient improvements such as cooling and heating systems, solar energy insulation or systems, or weather-proofing.

This program is known as the Veterans Administration’s Energy Efficient Mortgage (EEM). This add-on program is designed to be used with a VA purchase loan to cover the cost of energy upgrades such as solar panels.

Borrowers must accept how the EEM package will affect their mortgage payments. In some transactions, if the amount of fees exceeds a particular percentage owing to a variety of loan add-ons, your lender may be forced to pre-qualify you for the loan. Consult your lender if you believe this may apply to your transaction.

Lenders may consider your BAH as income if you are a qualified active duty member. This enables active-duty personnel to qualify for more significant loan amounts while still covering the monthly mortgage obligations. ALTHOUGH BAH IS CONSIDERED INCOME, potential VA loan applicants should be aware that the Post 9/11 GI Bill housing stipend is not, since it has a predetermined expiry date and is unlikely to continue.

5.  Refinance a VA Loan Several Times

This is not a one-time advantage when qualifying for a VA home loan. Because this is a lifelong benefit, there are no restrictions on how many times you may purchase a home using a VA loan.

You may use the lending program to acquire another property after repaying the first loan, either by selling the house or paying off the mortgage in full.

Two VA loans may be taken out concurrently. If you have sufficient entitlement left after purchasing one property, you may use your remaining retirement to buy another.


A VA mortgage loan may help military service members and their qualifying spouses achieve homeownership. It’s one of the most economical loan programs accessible, and since the benefit is lifetime, you may utilize it several times regardless of whether you’re expanding or contracting.

Noah Patel

Noah Patel is a finance specialist with over 10 years of experience in the financial industry. He has worked with a variety of clients, including individuals, small businesses, and large corporations, to help them achieve their financial goals. Noah's expertise includes financial planning, investment management, risk management, and retirement planning. He is dedicated to helping his clients make informed financial decisions that align with their long-term objectives. Noah is a frequent contributor to financial publications and has written extensively on topics such as personal finance, investing, and financial planning. His mission is to educate and empower individuals to take control of their financial future. When he's not working with clients or writing, Noah enjoys traveling, playing tennis, and spending time with his family.

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