In addition to providing standard fixed rate, adjustable, and jumbo rate mortgages, Pentagon Federal Credit Union adheres protocol designed to make it easier for veterans and current military personnel to purchase a home.
The difference between a conventional mortgage loan, such as the types mentioned above, and a VA mortgage is that a conventional loan is not insured. Conventional loans are not backed by the Government, and thus are generic in that they are available to any individual that wishes to take out a loan. Conversely, the VA mortgage program was implemented by the Department of Veterans Affairs as a loan guarantee program geared specifically to benefit veterans.
Upon qualification for a VA mortgage, there is little to no down payment required on your home and at a lower interest rate than standard mortgage loans. However, a VA mortgage does not offer as many different options as a conventional mortgage loan, such as biweekly or ARMs.
The reason why veterans are able to purchase a home with little to no down payment is because the Department of Veterans Affairs takes on some of the responsibility for the loan, almost like a consignee.
Of course, there are limits to the amount an individual can finance through The Department of Veterans Affairs, and a fee is charged for this service.
Please see the financial institution about any changes and additional information. For additional mortgage information refer to our Mortgages page