VA Loan

Benefits of a VA Loan

A VA loan is one of the most powerful and flexible lending options on the market. Rather than issuing loans directly, the VA pledges to repay about a quarter of every loan it guarantees if the borrower defaults — giving VA-approved lenders greater protection and often leading to highly competitive rates and terms for qualified veterans.

The most significant benefit is the ability to purchase with no money down — outside of USDA Rural Development loans, it's nearly impossible to find 100% financing elsewhere today.

VA loans also have less stringent underwriting requirements than conventional loans; roughly 80% of VA borrowers wouldn't have qualified for a conventional loan. There's no private mortgage insurance (PMI) required, a monthly expense conventional borrowers pay unless they put down at least 20%.

A few other VA benefits

• Down payment as low as 0%
• Competitive interest rates, routinely lower than conventional rates
• No prepayment penalties
• Higher allowable debt-to-income ratios than many other loans
• Streamlined refinancing that requires no additional underwriting

Park Grove Lending, LLC is not affiliated with or endorsed by the U.S. Department of Veterans Affairs (VA) or any other government agency.