Believe it or not, VA offers are often the better loan option when considered against conventional or FHA loans. Here’s why.

 

There’s a persistent myth promulgated around the real estate community that an offer on a home done through a VA loan is “weak” in comparison to conventional offers. I’d like to present four points that demonstrate that this isn’t the case:

1. Income. The average household income for veterans is $73,000 per year, and that often comes from two income sources. A good number of them also receive VA benefits, disability, etc. All of this makes for a very dependable income.

2. Credit score. While it’s true that veterans have quite a bit more leniency with their score, don’t let this fool you—the average score for veterans is actually a 738!

“Providing veterans with 100% financing and all the benefits that come with a VA loan are just small ways we can repay them for the sacrifices they’ve laid forth in the service of our country.”

3. Loan performance. This may be news to you, but VA loans perform better than any other loan in the country. Their default rate is at less than 2%, which ranks better than FHA and even conventional loans with 20% down. What’s more, lenders will not pass these loans up; they’re extremely good for their portfolio.

4. They’ve earned it. Providing veterans with 100% financing and all the benefits that come with a VA loan are just small ways we can repay them for the sacrifices they’ve laid forth in the service of our country. Let’s make sure they have every shot to buy a home with a VA offer.  

For help with any and all of your lending needs, give me a call at (719) 231-4893. I’d love to assist you however I can!