#best home loan
VA loans: The best mortgages
By: Amy Fontinelle, October 19th 2015
If you can qualify for a home loan backed by the Department of Veterans Affairs, you’ve probably found the best mortgage available.
VA loans don’t require a down payment and have lenient qualification standards.
Yet they charge a lower interest rate than conventional loans and are widely available. Many lenders offer this type of mortgage, from big banks to VA mortgage specialists.
Millions of veterans, as well as anyone on active duty and those in the National Guard and reserve units, are eligible. (Find the full eligibility requirements on the VA website.)
There’s a key reason why this loan is so attractive to banks and mortgage companies. If you default, the government covers some of the lender’s losses, typically 25% of what you borrowed.
That gives lenders the same protection as if you had put 25% down on the home, so they can offer lower mortgage rates on a loan for which it’s easier to qualify.
Mortgage Delinquency Rates