Many families complete their journey to homeownership thanks to VA home loans. Unfortunately, only a fraction of qualified veterans grab the opportunity to apply for loans guaranteed by the US Department of Veterans Affairs. Considering how many veterans live in the country, the number of applicants should be much higher!

There are facts about VA home loans that remain unknown to those who qualify for them. In this article, we will discuss some of the most important ones to help you determine which mortgage solution will work best for you.

No Need to Pay for a Down Payment

Eligible borrowers who have full entitlement and a loan amount higher than $144,000 are allowed to purchase a property without a down payment. Many loans, including conventional and FHA, need a 3.5 to 5 percent down payment. This ability to buy a home without making a down payment is a benefit that is exclusive to military homebuyers. It is very beneficial for those who had to scrape and stockpile funds for a long time.

No Need for Private Mortgage Insurance

Conventional loans require private mortgage insurance (PMI) with less than a 20 percent down payment. Most of the time, it is also a requirement for USDA and FHA loans. 

Veterans don’t need to add PMI to their monthly dues to cover their down payment. By not making PMI payments every month, VA borrowers can stretch their buying power and save money in the process.

Guaranteed Low Interest Rates

VA home loans are backed by the government, enabling lenders to have the confidence to extend favorable rates. As a matter of fact, VA loan rates tend to be the lowest on the market. An average 30-year VA loan has fixed interest rates lower than FHA and conventional loans. This information has been made available thanks to Ellie Mae, a loan software company that has been keeping track of loan data since November 2014.

Debt-to-Income Ratios Are More Forgiving

How do you compute your debt-to-income (DTI) ratio? It’s simple. Your DTI ratio amounts to your monthly debt payments divided by your gross monthly income. The VA allows borrowers to have any DTI ratio, although lenders usually want to see it at or below 41 percent. Some lenders can go even higher, depending on a veteran’s credit score and other financial factors. This flexibility allows VA borrowers to stretch their buying power.

You Can Use the Loan for More Than a House Purchase

VA borrowers cannot use their acquired funds to buy a second home or investment property. They must also certify that they plan to occupy the property as a full-time living space. However, they can use the fund to do more than just buy a new home. 

Qualified VA borrowers are allowed to do a multitude of things with the funds they get. For example, they are allowed to buy a home or condominium. They can also build, repair, renovate, or improve their property. Some veterans use VA loans to make energy-efficient improvements to their houses. Some borrowers also refinance an existing home loan or VA loan to reduce interest rates. Others purchase and improve a manufactured home lot.


Veterans who have served our country are entitled to many benefits, including home loans. By taking the opportunity to apply for home loans with low interest rates, you can purchase homes or refinance with confidence. If you want to learn more about VA home loan requirements, we can help you out.

Waymaker Mortgage is a loan agency, not only operating in Texas, but also many other states nationwide, has been helping locals achieve the American dream in a simplified way. With our help, veterans can apply for a VA home loan in Texas with ease. To coordinate with our agency, contact us today.