The chief advantage of VA loans is that they allow for 100% financing with no monthly mortgage insurance. They do, however, have funding fees of 2.15% on first use, 100% loans (with adjustments for 2nd use and higher down payments), which is a fairly significant cost. A veteran with down payment money and qualifying credit benefits by doing a conforming loan, which has no mortgage insurance (with 20% down), and no funding fee. Hope that helps, any more questions, let me know! Ted
A VA loan for a disabled Vet is almost always better than a conventional loan. As Ted mentioned there are funding fees to watch out for, but they are waived for disabled Vets. VA loans are not a “benefit” however, so be wary of on-line firms or mailers that promise “too good to be true” deals. The VA does not “set” the rates or closing costs, those are determined by each individual mortgage company. So even if you are doing a VA loan, you still need to pay attention to the numbers to make sure you are getting a good deal.
I said “almost always”. There are times when Vet’s with exceptional credit scores and large down payments may be better off going conventional. Just make sure you ask enough questions of your loan officer to make sure you understand your transaction.