Most home loans will have a few pros along with a few cons. It is important for borrowers to consider these features as it relates to their financial situation and decide what works best for their housing needs.

The features of a VA loan are easy to identify and explain. A qualifying borrower can buy a home with a VA mortgage and pay ZERO down at the time of purchase. They will also be exempt from paying any private mortgage insurance. Finally, the credit rules for a VA loan are not as strict as some other mortgage programs.

The cons of a VA home loan are thankfully few in number, but still important. First, there is the issue of the funding fee. This can be added to the loan amount, but it can push the loan balance well above the home’s value. Also, there is the issue of the closing costs. While some sellers are willing to negotiate the price of the home and pay the closing fees from the proceeds of the home, others are not in the position to do this. This leaves the veteran with the responsibility of paying several thousand in closing costs.

By discussing these items with a local lender, most veterans can go over the advantages and disadvantages of the VA mortgage and make a good, educated decision about their home purchase.