Veteran Home Loans versus Conventional Loans, NC Mortgage Experts

A Veteran is usually better off using their VA Home Loan Benefit in NC, as opposed to taking tons of cash, and going with a Conventional mortgage loan. Many Veterans don’t realize that even if you’ve used your VA benefits to purchase a home before, those benefits may have been re-instated. It’s time to look at your options and consider Veteran Home Loans versus Conventional Loans.

To have Veteran Home Loan benefits re-instated, the home must have been sold, with the loan paid off – or assumed by another Veteran who replaced your Eligibility with theirs.

Here are some of the benefits of Veteran Home Loans versus Conventional Loans:

VA Home Loan
Conventional Loan

No Down Payment Needed

Minimum of 5% Down Payment Required

No Monthly PMI Payments

PMI Required if less than 20% Down payment on the home

Easier to Qualify, lower minimum credit score requirements

Require longer waiting periods after credit catastrophes, and higher minimum credit scores

Very Low Interest Rates, because VA Loans are backed by the Government

Higher Mortgage Rates offered for Conventional Loans.

The 2014 maximum VA Loan with no down payment required is $417,000 in North Carolina.

As we’re written about before, qualified VA mortgage loan borrowers have two layers of loan entitlement. The first is $36,000, and the second is $68,250 for a total of $104,250. Since the VA pledges to guaranty about a quarter of the loan amount, the most VA borrowers can obtain without putting money down in most parts of the country is $417,000 ($104,250 x 4).

This means that if a Veteran wants to borrow more than $417,000 you only need to make a down payment equal to 25% of the amount OVER $417,000. So, for instance, if you are buying a $500,000 home, you would make a down payment of $20,750 – which is far less than the minimum required for a Jumbo Conventional Loan!

If you are considering a VA Home Loan in NC , or you have questions about Veteran Home Loans versus Conventional Loans – please call Steve and Eleanor Thorne 919-649-5058, we have the best mortgage rates and the lowest fees available!