EDUCATION

VA Mortgages vs. Conventional Mortgages – NewDay USA

There are a lot of loan programs out there for you to choose from

But if you’re a veteran, an active duty service member, or a member of the National Guard or Reserves, you have a unique advantage that other homeowners and homebuyers don’t have: You’ve earned the right to apply for a VA home loan.

As you’re shopping for a mortgage, it is important to understand all your options. Even if you qualify for a conventional loan, you should still consider a VA home loan, which may be a better option for you and your family.

 

VA Loan

Conventional Loan

Maximum Financing for Refinance

100%

80-95%

Down Payment Requirement for Purchase

0%

5-20%

Mortgage Insurance

Not Applicable

Typically required for loans with less than 20% down

Property Type

Primary Residence

Primary Residence, Second Home, Investment Property


What is a VA Home Loan?

The VA home loan program is an exclusive benefit to veterans and servicemembers. It is not available to civilians. These loans make it easier for veterans to buy homes or refinance their existing mortgages. Through this program, VA home loan lenders provide mortgages to borrowers, and the U.S. Department of Veterans Affairs guarantees a portion of the loan. Thanks to this powerful guarantee, lenders like NewDay are able to provide you with more favorable terms.

What is a Conventional Mortgage?

Conventional home loans are a category of mortgage products that are available to the general public. These loans are often harder to qualify for than VA loans or FHA loans. They usually require large down payments, and you can typically only refinance up to 80% of your home’s value. If you’re unable to make a 20% down payment, you will have to pay costly private mortgage insurance every month. Unlike a VA loan, a conventional mortgage can be used to purchase or refinance a second home, a vacation home, or an investment property, as well as a primary residence.


What are the Advantages of a VA Mortgage Loan?

A VA mortgage has several important advantages over a conventional loan. These unique benefits can give you more cash out, save you money, and make homeownership even more attainable.

  • You can refinance up to 100% of your home’s value, which means you can get much more cash for your family and home.
  • You can buy a new home with 0% down, which means no down payment coming out of your pocket.
  • You will never pay VA loan PMI (private mortgage insurance). This will save you money every month.

  • You’ve Earned the Right to Apply – Call Us Today

    It’s time to take advantage of your VA home loan benefit. NewDay USA has been granted automatic authority by the VA—contact us to start the application process or to learn more. Call us at 800-995-0374 or inquire online today.