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    VA Loan – Pros and Cons

    Are you aware of both the pros and the cons of VA home loans?

    Nick Steffl with the Whissel Realty Group breaks down what the VA home loan is and the pros and cons.

    VA of course stands for Veterans Affairs as in the Department of Veterans Affairs and the VA loan is one of the best benefits when it comes to having the GI bill which has been around ever since 1944 for our active duty service members and our veterans. So when it comes to the VA loans, let’s talk about both the pros and the cons when it comes to using your VA loan.


    1. First of all, when it comes to the VA loan, let’s talk about the 0% that you can put down on a home. A lot of home buyers are frustrated when it comes to the down payment that they have to put on a home but with the VA loan, you can put down 0% and get into that home that you love.
    2. Secondly when it comes to your VA loan, you’re able to get typically much easier qualifications when it comes to getting prequalified. Usually in your conventional loans, they have higher standards. With the VA loan, it’s a bit easier to get qualified. And also, you’re going to have a lower interest rate on your VA loan than you typically would on a conventional loan.
    3. Thirdly, when it comes to your VA loan, one of the benefits is going to be NO private mortgage insurance. Private mortgage insurance is something that you typically have to pay if you put less than 20% down on a conventional loan. But with the VA loan, it doesn’t matter what amount that you put down, it could be 20, 19, 15, 0% down, and you never have to worry about private mortgage insurance which saves you hundreds of dollars every single month.


    1. First of all, with your lower down payment that you’re going to have, you’re also going to have typically a higher principal on that loan as well and with that, you’re going to have a little bit more interest over the life of that loan.
    2. Secondly, when it comes to the disadvantages of your VA loan, you have a funding fee, a one time funding fee that you have to pay for this VA loan and that’s usually going to go from zero to 3% of the value of the loan depending on your military service history and the size of your down payment.
    3. Finally, when it comes to the disadvantages of using your VA loan, you’re going to have a limit on how much you can borrow. So if you’re trying to purchase a 5 million dollar mansion here in San Diego, that’s usually not going to work with the VA loan. But, if you’re looking for a home that you and your family do need at a lower price, that’s something that we can use and get you into that home that you do need.

    So if you have any questions about the VA loan or any kind of other loan types, give me a call 619-933-7155. I would love to connect you with one of the lenders that we work with. Have them get you approved and once we do that, you and I will go searching for that perfect home and get you the home of your dreams.

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