One of the best aspects of the VA loan is the no down payment guarantee, for qualified borrowers, that makes initial costs cheaper when choosing a home. VA qualified borrowers will be able to purchase up to $1,200,000 in most of the country before needing to put any money down, compared to conventional loans, where a 3 percent down payment may be required. Conventional borrowers who can’t afford a 20 percent down payment often pay for private mortgage insurance, an expense that can add up quickly. With a VA loan, upfront costs for purchasing a home and mortgage insurance can be an expense eliminated for buyers. Most VA buyers do, however, pay an upfront funding fee they may choose to roll into the loan. This funding fee is paid to the VA and helps keep the loan program running.

In addition to no down payment, with a VA loan there is no prepayment penalty. Homeowners have the option to pay off most or all of the loan before the repayment period is over without penalty. Refinancing without re-qualifying is also a large benefit. With most other home loans, you will need to repeat the qualification process in order the refinance your home loan. With a VA loan, there is no re-qualifying.