Veterans have benefits awarded exclusively to them for their dedication and service, including disability and education compensation, career training, health care, and even home loans. However, with federally-funded home loans, there is more than one option. When it comes down to it, what is the best -- FHA loans or VA loans? This article will help you understand and make an informed decision on which loan is best for you.
An FHA loan is a US Federal Housing Administration mortgage insured by the government and provided by an FHA-approved lender. The requirements for FHA loans are not that hard to obtain, especially when it comes to the credit score. For example, some of the requirements for FHA are:
As for the VA loan requirements, believe it or not, they are easier to obtain than the FHA requirements. A VA loan is a mortgage guaranteed by the United States Department of Veterans Affairs, and some of the requirements are:
As much as everyone would like both types of loans to be perfect, each has its advantages and disadvantages. It's essential to look at them before making a final decision. Some of the FHA advantages and disadvantages are:
The main difference between FHA loans and VA loans is the PMI and MIP. When it comes to Private Mortgage Insurance (PMI), VA doesn't have PMI. However, FHA loans require you to pay the government equivalent of PMI, called MIP (mortgage insurance premium).
After a deep analysis of both loans and looking at the advantages and disadvantages/the requirements, a VA loan comes out on top for veterans looking to purchase a home. With no down payment, PMI, easier credit, and lower interest rates, VA home loans are more comfortable and accessible than FHA loans. Still wondering if the property qualifies for a VA mortgage? Contact us today to get all your questions answered.
We've been helping customers since 2008 afford the home of their dreams, one client at a time and we love what we do. We stand by our client for life philosophy.
Company NMLS: 75239
1st Pacific Capital strives to ensure that its services are accessible to people with disabilities. 1st Pacific Capital has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
1st Pacific Capital makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows 1stpacificcapital.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
1st Pacific Capital accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
1st Pacific Capital continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on 1st Pacific Capital website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on 1st Pacific Capital website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org