The VA home loan comes with a colorful history. It dates back to the end of World War II and has since then helped millions of military families, veterans, and other service members achieve the American dream of homeownership. 

In this modern age, the VA home loan is vital now more than ever. It continues to assist a huge number of veterans who cannot qualify for regular home loans, which helps them not only purchase but build, improve, and even refinance a property. Although credit and income requirements are still present, terms are always more favorable compared to the regular market offers. More often than not, VA-backed loans come with no down payment.

Although these benefits are undeniable, there are other rewards often overlooked by veterans. Here are some of the best ones you can enjoy:

Benefit #1: You have access to looser credit requirements 

Although credit score requirements have generally been more forgiving the past few years, it remains to be the number one obstacle prospective homeowners face. Military members in particular still have immense trouble getting approved for loans, especially since conventional and FHA lenders still operate under strict guidelines.

Most VA lenders, however, only look for a credit score of at least 620. This provides enough room for veterans to qualify. Although regarded as a credit score below the “good” FICO mark, VA buyers now have the chance to qualify for secure financing—even with less than ideal credit scores. 

Benefit #2: You enjoy forgiving DTI ratios 

Unlike conventional lenders, VA companies generally ask that you spend no more than 41 percent of your gross monthly income. This pertains to expenses such as student loans and mortgage payments, but other veterans often go beyond the needed DTI (debt-to-income ratio) percentage to make way for other parts of life. 

This may seem like the end of the dream for to-be veteran buyers, but thanks to the nature of VA loans, you can still qualify for a VA home loan. Such flexibility makes it easier to maximize your purchasing power, even with plenty on your plate.

Benefit #3: You don’t have to pay for any prepayment penalties 

Conventional mortgage lenders often come with clauses that compel buyers to pay additional penalty amounts, all for paying off their loan early. This happens mostly for the benefit of the lender. Here, the lender still receives the extra money they would have lost, especially now that you no longer have to pay for interest. 

With a VA loan, you never have to worry about getting penalized over early repayments. You can pay off your refinance or loan as you wish, all without worrying about shelling out more costs on penalties.

Investing in the Best For Your Family 

From everything gathered, we can safely say that VA home loans continue to be the best in the market. This financing option continues to help veterans and military members achieve the life they deserve, and you’ll likely be enjoying the same benefit and more. As you prepare to apply for a VA loan, remember to keep this list in mind!

For the best VA loan lenders in Santa Ana, CA, Net Lending is the place for you. We are a top wholesale mortgage broker, ensuring that you secure only the best possible loan terms and rates. Let’s chat!