There are many benefits of a VA Home loan: Equal opportunity. No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property). Buyer informed of reasonable value. Negotiable interest rate. Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation). Closing costs are comparable with other financing types (and may be lower). No mortgage insurance premiums. An assumable mortgage. Right to prepay without penalty. For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder. VA assistance to veteran borrowers in default due to temporary financial difficulty.