Low Down Payment

• VA loans have no required down payment. Most conventional loans require a down payment of 10 to 20 percent.
  
  

Lower Interest Rates

• VA loans usually have interest rates that are between 0.5 percent and 1 percent lower than conventional loans.
  
  

No PMI

• Private mortgage insurance (PMI) typically comes with a mortgage when you cannot make a 20 percent down payment. However, VA loans are exempt from this extra cost.
  
  

Credit Approval

• There is no set credit score requirement for VA loans. The approval process focuses on debt-to-income ratios rather than past credit history.
  
  

Flexibility

• VA loans can be either fixed rate mortgages (a fixed interest rate for the life of the loan) or adjustable rate mortgages (designed for low- to moderate-income families).