VA Loan vs. Conventional Loan: Which is the Best Mortgage Option for You

Transcript

Are you considering buying a home but you’re unsure which mortgage option is best for you? Let’s compare VA loans, conventional loans, and FHA loans to make the best possible decision. Start with the VA loan. The loan program is available for veterans, active duty personnel, and surviving spouses. The VA loans offer benefits.

for primary residents only. That’s a big caveat that could really not be matched. There are lower interest rates, especially a place like our company where we do not increase our profit margins on veterans like most lenders do. And then you have lower down payment, no down payment the better interest rates, no monthly mortgage insurance.

So, if you’re eligible, the VA is a fantastic, fantastic choice for you. Now, if you’re buying an investment property, VA alone does not apply. So, you have to do a conventional loan and you have to do a down payment. So, if you have a conventional loan, that’s going to be a little bit more flexible. So, you can do it for a primary residence, you can do it for a second home.

You can do this for your investment properties. So that’s not backed by the government. It’s gonna be a little bit higher, interest rates, higher down payment, but it could get, get you what you want. So which one’s better for you? So veteran, hands down, the best deal to get on a primary residence is probably gonna be as long as the property allows the, the, the property, it, it would be best to do a VA loan.

So that would be your ideal choice, ho. However, if you have a large down payment and you’re doing some other occupancy types. Then you want to go with a conventional loan. So this depends on your unique financial situation, your financial goals, and your eligibility. So it’s crucial to consult with the lender to come up with the best options and they can guide you.

Now beware, some lenders will push you towards a loan that pays them more. And you might think, Scott, that sounds like it’s kind of illegal. It is. They do it anyway. Trust me, I’ve seen this many times. People get pushed into an FHA loan because it gives them a higher profit margin. And that’s something that’s going to do dirty practice.

It’s done in our, our, our financial industry. I see it all the time where people should do a conventional loan. They can have a lower down payment. They could have lower monthly fees. They can have lower mortgage insurance that goes away, whereas FHA stays. And it’s only so the lender makes more. So, once you’re educated, we’ll show you everything.

We’ll have you, you make the choice. You’re the one paying the bills, so you’re going to make the choice. We want to give you all of the loans. Compare and contrast the strengths and weaknesses. And also, if somebody tried to push you into FHA, you kind of know that’s one of those red flags we talked about in my other videos.

So, thank you for watching the video. I hope you found information towards your loan choices. And don’t forget to subscribe, smash the like button, and we appreciate your help. Thanks.