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4 Overlooked Facts About the VA Mortgage Loan


By Lawrie Vick

As a member of the military community, the first step in owning the home of your dreams may be understanding the VA Loan and how it works. The VA Loan offers valuable benefits to those who are eligible, but sometimes those benefits are  overlooked. We’ve provided  four often overlooked insights  about the VA Loan below

1.      VA interest rates are historically lower than conventional mortgages, making the VA Loan a better option in the long run. However, while the VA Loan is well known for not requiring a down payment, some buyers think that if they can offer a down payment they should. Many lenders look to  place those who offer a down payment into a conventional loan, which often comes with a higher interest rate than a VA Loan.

2.      VA Loans are assumable, meaning that a homebuyer can assume the home seller’s current mortgage. This is especially attractive in a rising interest rate environment, as the current homeowner’s interest rate may be significantly lower than the current average.

3.      VA Loans often do not require a down payment if you are purchasing within the loan limit. If you are above the area loan limit, you will need to put money down, and in some cases  the down payment could  be significantly less than your typical FHA or Conventional loan. Often buyers think the VA has  a maximum lending limit.  They don’t, but rather  only establishes a limit on how much loan they will insure.

4.      The underwriting requirements on a VA Loan are normally less stringent than other types of financing. VA loans do not have a minimum credit score requirement.. The VA can also finance your purchase two years after foreclosure or bankruptcy, depending on the circumstances surrounding your reasons for default. If the foreclosed loan was from the VA, you may be required to pay part of the loss.

Use our calculators to help you determine how much your monthly VA Loan payment might be.

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We’re Here to Help

If you’re not certain about whether or not it’s the right time to purchase a home, please contact us online today or give us a call at 844-218-6926. An expert Military Mortgage Advisor will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of low-rate and low-cost mortgages designed to meet your needs. Ensuring our Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today!

Lawrie is the Branch Manager of AAFMAA Mortgage Services in Northern Virginia. She has been in the mortgage industry for more than 30 years, meeting the needs of clients and real estate agent partners in Virginia, North Carolina, Maryland, and Florida. Lawrie was the owner of Severn Mortgage Corporation, one of the largest independent mortgage companies in Leesburg, Virginia, for more than 11 years.

She has three children and three grandchildren, and enjoys her homes in Northern Virginia and the Hampton Roads area. Lawrie serves as an on-call Chaplain at INOVA Loudoun Hospital and is currently working on her BS in Ministry and Clinical Pastoral Services. Lawrie also grew up in a military family, with family members serving in the Navy, Army National Guard and Reserves.