By Krystel Spell

6 Money Saving Reasons You Should Use the VA Loan When Buying A Home

The VA loan program is a great benefit of military service that provides many money saving options and empowers Veterans to achieve their dreams of homeownership.

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Before diving into the benefits, it's important to understand who is eligible for the VA Loan program. 

The VA Loan extends to: 

  • Veterans: Those who have served in the active military and have been honorably discharged with at least 90 days of continuous service.
  • Active Duty Service Members currently serving on active duty.
  • National Guard and Reserve Members who have completed the required service time.
  • Surviving spouses of Service Persons who died in the line of duty or as a result of a service-connected disability.

Now that we've established who can benefit from the VA Loan program, here are 6 reasons to consider using it on your next home purchase.

No Down Payment Required

One of the most significant advantages of the VA Loan is that it offers eligible borrowers the opportunity to finance their home purchase without requiring a down payment. This benefit can allow borrowers to save money for other expenses, such as moving costs or home improvements.

No Private Mortgage Insurance (PMI)

Conventional loans usually require private mortgage insurance (PMI) if the borrower's down payment is less than 20% of the home's value. However, VA loans do not require PMI. By eliminating this additional cost, you can save hundreds of dollars each month, making homeownership more affordable and accessible.

Flexible Credit Requirements

The VA loan has more forgiving credit requirements compared to traditional loans. While lenders still assess creditworthiness, VA Loan guidelines are generally more flexible. Even if a borrower has had past credit issues, they may still qualify for a VA loan. 

VA Loan Can Be Used Again

Once you have earned eligibility for a VA Loan, it remains with you indefinitely. Whether you served years ago or recently, your eligibility for the VA Loan program does not expire. By obtaining your DD Form 214 and requesting your VA Certificate of Eligibility, you can confirm your eligibility and continuously utilize this money-saving benefit of your military service.

Competitive Interest Rates 

A portion of the VA loan is backed and guaranteed by the government, which reduces the risks to lenders. Because of this lenders are more willing to offer favorable terms and lower interest rates to VA loan applicants.

Easier Refinancing Options

The VA loan program offers simpler refinancing options, called Interest Rate Reduction Refinance Loans (IRRRL). This means that if you already have a VA loan, you can refinance it more easily. Refinancing allows you to replace your existing loan with a new one that has a lower interest rate.


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