Even where several loan types are available to military personnel, none can match the VA Loans Programs that comes without money down. It has outstanding advantages that its closest rival, the USDA, cannot beat.
To prove this assertion, here is a comparison of the three major loan types including FHA, USDA and the ordinary traditional loans, all which enjoy government guaranteeing.
VA Loans
Since the penultimate year of World War II (1944), when the Americans turned the war in favor of the Allied Forces, the Veterans Association VA loans have continued to be favorites for the military. Their exclusivity is almost legendary because besides being only for ex-servicemen, they also curve boundaries on who among them can qualify. Spouses, too, in case of maiming or demise of a veteran, may qualify. The loan is free of money down payment, has a refinance program, can help applicants convert equity into cash through the Cash-out program, and can enable borrowers to supplement rates from fixed to adjustable and vice versa, via refinancing.
USDA Loans
The United States Department of Agriculture bequeaths the nearest package to a VA loan to civilians in rural America. These must be in a settlement that has a certain limit of per capita income category. Though, some urban centers or their suburbia with populations of less than 25000 people can qualify. Like VA, the loan has no money down but because of limited loan amounts, it pales before the towering shadow of VA.
FHA Loans
The Federal Housing Administration, under HUD, has perpetually provided one of the best-known loan provisions to both civilians and ex-servicemen who want mortgages for their new homes. It is synonymous with first time buyers, with a money down payment rate of 3.5 percent against a conventional 10-20 percent in the commercial market. It can be savvy for military men when they want what the law terms ‘fixer uppers’ or refurbishment costs. One has to adhere to building standards like design and energy sustainability. Unlike VA, there is a minimum down payment and an MIP charge.
Traditional Loans
Veterans who may feel like the VA loan offering is not their fit can also access traditional loans. These are similar to conventional home loans with almost no big difference.
As the comparison above demonstrates, VA loans Programs are the most versatile and most suitable for veterans who want to take advantage of the best loan option in the market thanks to their dedication to serving the country while in the line of duty.