The Pros & Cons of VA Loans


– Hey, it’s Austin Schneider
here and today we’re gonna give you the pros and
the cons of a VA Loan. So a VA Loan is set up
for active and non-active military members as a perk for those who served in our military. Pro number one of a VA Loan is that there is no down payment required. Forget that 20%, forget that 3.5%, you don’t have to put anything down. Con number one is there’s a VA funding fee which typically comes out to around 2% of the purchase price. Pro number two is you’re
gonna be saving money on Private Mortgage Insurance. You will not have to pay
the up to a couple hundred dollars a month in this
Mortgage Insurance. Con number two is that
the VA Loan is intended for primary residence,
meaning you need to be living in this home. Pro number three is that there’s a higher debt to income ratio, meaning
that you can get a loan for a larger amount than
you probably would be able to with a conventional loan. Con number three of a VA
Loan, it could be a turnoff to sellers, the 0% down
sometimes makes them shake a little bit in their shoes, especially if it is a
competitive situation. Alright, guys, for more
on VA Loans pros and cons, visit us online at TheMortgageReports.com. Thanks so much for watching, we’ll see you on the next one. (upbeat music)

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