Loan Programs
for Veterans

Which Loan Program is Best For You?

There are many loan programs for veterans that can fit almost any need. Please call and ask which loan program best fits your situation.

Recommended Programs

You can use the information below to choose the best program for your needs.

15-Year and 30-Year Fixed Rate

The payment and rate stay the same from start to finish, plus tax.

Adjustable Rate Mortgage (ARM)

Depending on the program and grade, the lowest start rate adjusts every 6 months or every 12 months. It is based on the economy's 6% ceiling for prime and 7% ceiling for subprime.

5/1 and 7/1 Fixed Rate

The rate is fixed for the first 5 or 7 years, then shifts to an adjustable-rate mortgage (ARM).

Years you plan to stay in the house	Recommended Program(s)
1 – 3	3/1 ARM, 1 year ARM or 6 month ARM
3 – 5	5/1 ARM
5 – 7	7/1 ARM
7 – 10	10/1 ARM, 30 year fixed or 15 year fixed
10+	30 year fixed or 15 year fixed

Which Loan Program is Best for Me?

Here are a few things to keep in mind when selecting a loan program:

15-Year and 30-Year Fixed Rate

Advantages

The maximum interest deduction for taxes, sometimes easier to qualify, stable, predictable payments, high loan to value, lower down payment, and possible secondary financing if needed.

Disadvantages

Pay more interest over the life of the loan, have a higher starting interest rate, lower debt ratio (Larger Income to qualify), and higher monthly payment.

Adjustable Rate Mortgage (ARM)

Advantages

Lower starting rate than 30-year fixed. Great for refinancing from a higher rate. Use when you plan to move in 5-7 years. Some are convertible to 30-yr fixed or a treasury ARM. Low fees, good rates.

Disadvantages

Loan balance due can change long-term financial planning if you plan to live there for over 7 years.

Advantages / Disadvantages

Lower starting rate than 30-year fixed. Great for refinancing from a higher rate. Use when you plan to move in 5-7 years. Some are convertible to 30-yr fixed or a treasury ARM, low fees, and good rates. Loan balance due can change long-term financial planning if you plan to live there for over 7 years.