As part of the benefits that active military members and veterans receive from the government, VA loans are built on a merit-based system. Career military and those honorably discharged early are generally eligible, but short-term members or Reserves may have to meet additional requirements. Anyone who can get this loan will need to bring a Certificate of Eligibility in order to get the ball rolling with an approved lender.
In most parts of the country, veterans who qualify for the VA Loan can purchase a home worth up to $453,100 without putting any money down; however, with the 2017 VA Loan Limits, borrowers in high-cost counties may be able to purchase homes far exceeding that amount without a down payment.
The seller is allowed to pay up to 4% of the home price, of the veteran’s closing costs. So, it is possible to avoid paying anything out of pocket to buy a home.
Pros: Favorable interest rates, extremely flexible guidelines and absolutely nothing required as a down payment (often little to nothing required at closing!) There’s no mortgage insurance, just a one time “funding fee” that varies with your service type, down payment and times you’ve used your Eligibility.
Cons: Really, there aren’t any. You can’t get this if you’re not military, though, so that could be a con if you really wanted this most excellent loan type.