MYTH: VA HOME LOANS ARE MORE EXPENSIVE THAN CONVENTIONAL HOME LOANS
Hi there, Kyle Johnson here with Veterans Lending Group. Today, we’re talking about the myth that the VA loan is more expensive than a conventional loan. The truth is, the VA loan is one of the least expensive mortgage options available.
One of the biggest advantages of a VA loan is that it requires no down payment. Instead of waiting several years to save for a down payment, you can buy immediately, save on rent and start building equity.
Additionally, on other loan programs, including conventional, if you don’t pay 20% down you’ll be required to pay private mortgage insurance, often on a monthly basis.
On a $300,000 home, FHA and conventional. Mortgage insurance can be in excess of $200/mo. This is a savings of over $2,000 per year for the veteran.
One final saving is found in the interest rate – typically, interest rates are significantly lower than a conventional loan for the same client.
Altogether, these savings lead to significantly greater buying power and lower payments for our veterans and service members
Reach out to us today and we can help determine the best, and cheapest, option for you!