A Better Option To FHA And Conventional Loans Almost all home loans were conventional loans It was common to have no money down for home loans before the financial crisis, and mortgage rendered down. Mortgage insurance for 80/20′s was an important consideration for borrowers so they can proceed to apply for an FHA or VA home loan. It was common to have no money down for home loans before the financial crisis, and mortgage rendered down. Mortgage insurance for 80/20′s was an important consideration for borrowers so they can proceed to apply for an FHA or VA home loan. The financial attitude today is to a large extent different. As a result of an onslaught of foreclosures, and falling home prices, banks have realized that it was a bad idea to offer 100% financing. It is a need for borrowers to have some skin in the game. This has really slowed down the housing market, as it is hard for American’s to save up sufficient money for real estate down payments. Yet, no money down loan options is still available for qualified individuals. One of these programs is the VA Home loan. The VA loan is a great program for Veteran’s, who want to buy a house. This is just one of the numerous available loans offering 100% financing. If you have served active, full time, military service for at least 180 days, you could be pre-approved for a VA home loan. The loan program also qualifies the spouses of the deceased veterans. The VA home loan is very generous when it comes to debt to income ratios. People can qualify for VA home loans with up to a 50% debt to income ratios. The VA loan has no monthly mortgage insurance, making it more affordable than FHA loans. The upfront mortgage insurance is 2.15%, slightly less than USDA rural housing loans, but more than FHA loans. Likewise, the interest rate is similar to conventional and FHA rates. The veteran’s administration has a different mindset for issuing loans compared to other mortgage programs. The VA home loan aims to help those who serve the country to have a home. Other loan programs are very careful that they only give loans to well-qualified buyers. Income, employment, and credit requirements are not nearly as strict with VA home loans as they are with FHA and conventional loans.