VA vs. Conventional Loans


Advantages of VA Home Loans

Buying or refinancing a home is a very important decision. Almost as important as selecting the right home is making sure you are selecting the right loan. There are distinct differences between VA and Conventional loans as well as significant advantages for buyers who qualify for a VA Loan.

Down Payment - VA Offers $0 Down

Conventional loans require a minimum down payment of 3% but in many cases, particularly in today's market banks are asking for as much as 10-20% down. Down payments help to mitigate the bank's risk should the loan go into default. Because a VA Loan is backed by the federal government, banks do not require a down payment making a VA Loan one of very few loan programs that can still offer 100% financing.

Monthly Payment - Save Big Every Month with VA

Because the loan is backed by the government, banks do not require PMI (private mortgage insurance), an added monthly expense required for conventional loans where the borrower finances more than 80% of the home's value.

Lenders may offer a slightly lower interest rate to a VA borrower (sometimes 0.5%-1.0% reduction vs. conventional) because the government backs the VA loan so there is less risk to the lender. Interest rates are based on the banks capital risk should the loan go into default. A lower rate combined and no PMI can substantially lower your monthly payment, which means more cash in your pocket every month.

Qualification Standards - VA can be more lenient

The credit score and qualification standards for each loan type are very different. Once again, because the government backs the loan, banks assume less risk and may have less stringent qualification standards for VA Loans.

Offset Your Mortgage Payment

If you are on Active Duty, most likely you receive a housing allowance (BAH) that can help you offset all or most of the cost of an average mortgage payment. With the added tax benefits that homeownership can offer, this can be a substantial benefit to many military families. Please consult your tax advisor for details.


Michael Patterson, Branch Mgr
Military Loan Specialist


Phone: 425-289-1102

MLO #:

Contact Michael Patterson, Branch Mgr, your local VA Mortgage Specialist, to setup a free consultation and develop your winning strategy when purchasing your new home with a VA Loan. It will be my pleasure to serve you! 

Land Home Financial Services, Inc.

Michael Patterson, Branch Mgr
Phone: 425-289-1102

Equal Housing Opportunity Lender. Land Home Financial Services, Inc. is a mortgage finance company and does not represent parties to Real Estate transactions or operate as a Real Estate company. The Agent Mastermind free webinars and marketing strategies are a service of a third party vendor, is offered as a convenience service only, and should not be construed an endorsement of any particular company. The accuracy of all information, regardless of source, is not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. Land Home makes no guarantee or promises on success from the use of these services. Use of these services are not to be construed as a commitment to lend. Land Home Financial Services, Inc. only conducts business in the states it is licensed in. Washington Consumer Lending License CL #89331.

Notice: This is a privately owned and maintained web site by Michael Patterson, MLO 69386, specializing in VA financing and is not a government agency. Applicable state disclosure regulations require licenses and information to be explicitly disclosed. Land/Home Financial Services, Inc. only conducts business in states we are approved to. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL 89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are approved in.