Even though VA home loans have many advantages over standard mortgage loans, such as no requirements regarding down payments, no PMI premiums to pay, savings on interest and not paying closing, there are some disadvantages. Generally, with VA home loans, you will encounter many of the same negative aspects that you would with a traditional loan.
One point made by many is that VA mortgages can take a protracted period to process. A serious hindrance for most vets is simply trying to find a seller that will deal with VA mortgage terms due to this idea of long waits on loan processing. In other words, it may be difficult to find a house.
A further disadvantage of VA loans has to do with benefits mentioned earlier. Since you are not allowed to pay the closing costs, the seller must assume responsibility. This could mean that the veteran will have to take a non-negotiable asking price for the house.
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