VA Loans – The Interest Rate Advantage
When shopping for a home loan, consider this – VA loans have an interest-rate advantage over most other types of loans. VA borrowers with lower credit scores tend not to be penalized with higher interest rates like conventional borrowers do. Typically when a conventional borrower has a credit score below 720, a higher interest rate will be applied to that home loan comprar casa espana. And, regardless of credit score, a conventional borrower will most likely have to put twenty percent down in today’s loan market. Larger down payments and higher interest rates are a common way for conventional lenders to offset risk.
VA loans work differently. The U.S. Department of Veterans Affairs guarantees a portion of every VA loan made by VA-approved lenders. This guaranty, takes the place of higher interest rates and large down payments for offsetting risk. Therefore, VA-approved lenders can offer more attractive terms like …
