VA Loans vs. FHA Loans – Veterans Should Consider Both
Whether you’re thinking of refinancing your current mortgage or buying a home, choosing a mortgage program should be one of your first steps.
There are plenty of different programs for you to choose from, including VA loans and FHA loans. VA loans are available to servicemembers and veterans, while FHA loans are available to anyone.
At NewDay, we’re happy to be able to offer you both VA loans and FHA loans, because we believe in helping you find the best mortgage to meet your needs. Read more below to find out which is the best fit for you.
Quick Facts
| VA Loan | FHA Loan | |
| Eligible to Apply | Veteran or Active-Duty with sufficient service | Anyone |
| Maximum Financing for Refinance | 100% |
|
| Down Payment | 0% | 3.5% |
| Property Type | Primary Residence | Primary Residence |
| Key Advantage | 100% Financing | Apply with Less-than-Perfect Credit |
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 a home or refinance their existing mortgages. Through this program, private 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 USA can provide you with more favorable terms.What is an FHA Home Loan?
The FHA loan program is a mortgage program that’s available to the general public. These loans are a popular option for borrowers with limited funds for a down payment. The Federal Housing Administration (FHA) insures the loan, so that lenders like NewDay USA can offer low down payment requirements and flexible credit criteria. You will have to pay an up-front mortgage insurance fee as well as monthly mortgage insurance premiums.When Should Veterans Consider FHA Loans?
Even if you’re a veteran, there are certain circumstances where you may want to consider an FHA mortgage. FHA loans are a great option if you don’t qualify for a VA home loan.
- The VA loan guidelines require you to have served for a minimum amount of time in order to qualify. If you don’t qualify because you haven’t served sufficient time, consider applying for an FHA loan.
- If you have a VA loan on another property, or if you’ve had a foreclosure in the past, you may not have sufficient VA entitlement to take out another VA loan.
- If you’ve been turned down by other lenders because of your credit or income, you may still qualify for an FHA loan. When banks say “no,” our team will do everything we can to say “yes.”
Call Us Today to See if You Qualify
NewDay USA offers loans for veterans including VA and FHA mortgages. Our team of dedicated Account Executives is standing by to help you evaluate your options. Call us at 800-995-0374 or inquire online today to get started.