When is the VA Loan not my best option?

For most borrowers, the VA loan represents the best available option for a home refinance or purchase. The terms of the loan, the minimal requirements and guidelines and especially the no money down option make the VA loan the perfect choice for almost every military borrower. The whole premise behind the loan program is to nearly guarantee that a veteran of the military or a surviving spouse have the availability to purchase a home. There is really no other alternative if you qualify for some type of VA financing.

One Scenario When VA Financing is not the Best Option

The only scenario out there for veterans and surviving spouses who want to choose a conventional loan over VA financing is cash reserves. If the veteran or spouse has more than enough reserves to cover the 20 percent down payment requirement, then it is possible to obtain a lower rate than you would get from the VA. However, it is still probably not the correct alternative to VA financing. The borrower can hang on to their cash reserves, still receive a low interest rate and use the reserves to maintain their new home. The benefits from VA financing are far greater than any type of conventional financing. That is why military borrowers should always consider going the VA for any type of home purchase or refinance.

Finding Help With MortgageDepot

If you still feel like exploring other options aside from the VA, then MortgageDepot can help. We are a well-respected team of mortgage experts that guide you through the entire process. We help you make the correct choice on any type of mortgage financing, whether it is conventional or through the VA. Give us a call today and find your best available option.