VA Loans: The Best-Kept Secret in Mortgage Lending

VA Loans: Why They're the Best Mortgage Product in America

If you're a veteran, active-duty service member, or qualifying spouse, the VA loan is hands-down the best mortgage program available. Zero down payment. No private mortgage insurance. The lowest interest rates on the market.

Yet according to the Department of Veterans Affairs, only about 6% of eligible veterans use their VA loan benefit. That means millions of veterans are leaving money on the table.

VA Loan Benefits at a Glance

• Zero Down Payment: Buy a home with $0 down — no other conventional program offers this
• No PMI: Save $100-300/month compared to conventional loans with less than 20% down
• Lowest Interest Rates: VA rates are typically 0.25-0.50% lower than conventional rates
• No Prepayment Penalty: Pay off your loan early without fees
• Lenient Credit Requirements: Most VA lenders accept scores as low as 580
• Limited Closing Costs: VA limits what lenders can charge in closing costs
• Reusable Benefit: You can use your VA loan benefit multiple times

Who Qualifies for a VA Loan?

• Active-duty service members with 90+ days of service
• Veterans with 90+ days wartime service or 181+ days peacetime service
• National Guard and Reserve members with 6+ years of service
• Surviving spouses of veterans who died in service or from service-connected disabilities

The VA Funding Fee Explained

VA loans don't require PMI, but they do have a one-time VA Funding Fee. This fee ranges from 1.25% to 3.3% of the loan amount, depending on your down payment and whether it's your first use.

Good news: The funding fee can be rolled into the loan (no out-of-pocket cost). And some veterans are exempt entirely, including those receiving VA disability compensation.

VA Loan Myths Busted

• Myth: VA loans take longer to close. Reality: With experienced VA lenders, closing times are competitive with conventional loans.
• Myth: Sellers don't like VA offers. Reality: VA offers are just as strong — and VA appraisals protect both buyer and seller.
• Myth: VA loans are only for first-time buyers. Reality: You can use your VA benefit as many times as you want.
• Myth: VA loans have low loan limits. Reality: With full entitlement, there is NO loan limit as of 2020.

Apply for a VA Loan Today

At Slate Financial, we specialize in VA loans and work with veterans every day. Our AI-powered platform matches you with the best VA lenders and streamlines the entire process. Learn more about VA loans or apply now.

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