There are several major benefits to a VA loan, but the main 3 reasons that most Veterans choose to go with a VA loan vs Conventional loans are:
1) 0% Down. This is one of the last programs that allows as little as $0 Money Down to close. That means you can save your money for the new furniture, movers or just keep this in your savings account for a rainy day.
2) No Mortgage Insurance and No PMI. If you were to purchase a house with conventional financing, you would be required to pay monthly on the mortgage insurance. On a FHA loan of $200,000 that could cost you as much as $225 per month, so a VA loan saves you significantly on your monthly payment. This means more savings, so you can put more money in your savings. Now, please don’t confuse this with home insurance, which is what is required and will protect you in case of a fire, or weather damage. That will still be in place and required. The Mortgage insurance is what protects the lender in case of default, and has no real benefit to the borrower other than allowing less money down. However, with a VA loan, there is no mortgage insurance, and 0% down is required.
3) Lower Rates traditionally than a conventional loan. Rates on a VA loan are typically .375-500% lower than that on a conventional loan. So when you add this in addition to the no mortgage insurance, you will see that VA loans can save you significantly on your monthly payment.