Are VA Loans in Madison, WI Better Than Conventional Loans

John Reuter

Mar 53 min read

Updated: Mar 6

Man thinking beside notepad labeled VA Loan approved. Text: Are VA Loans Really Better than Conventional Mortgages? Calculator and cactus.

If you’re a veteran or active-duty service member in Madison, WI, you may be wondering: Are VA loans in Madison better than conventional loans? To break it down, I sat down with Mike Schroeder, a Senior VA Loan Specialist at Guaranteed Rate (NMLS 294679), to discuss why VA loans are often the best option for military families looking to buy a home in Madison and Dane County.

What Makes VA Loans a Better Choice in Madison, WI?

According to Mike Schroeder, “VA loans offer veterans unique advantages that conventional loans simply don’t, especially in a competitive market like Madison.”

Here’s why:

1. No Down Payment Required

Unlike conventional loans that typically require 5-20% down, VA loans allow you to buy a home with zero down payment. This is a game-changer, especially in Madison’s fast-growing housing market.

Mike’s insight: “In Madison, where home prices are rising, keeping cash in hand for renovations or emergencies is a huge benefit. VA loans let you buy a home without depleting your savings.”

2. Lower Interest Rates

VA loans generally have lower interest rates than conventional loans, meaning you’ll pay less over time.

Example:

VA Loan Rate: ~5.5%
Conventional Loan Rate: ~6.2%

That difference can add up to thousands of dollars in savings over the life of your loan.

3. No Private Mortgage Insurance (PMI)

With conventional loans, if you put down less than 20%, you’ll pay PMI, which can be $100-$300 per month. VA loans eliminate this extra cost.

Mike’s insight: “A lot of buyers don’t realize how much PMI adds to their monthly payment. With VA loans, that’s one less expense to worry about.”

4. More Lenient Credit Requirements

VA loans don’t have a strict credit score requirement like conventional loans. While many lenders prefer a 620+ credit score, VA loans can still be approved with lower scores.

5. Easier Approval for Madison Homebuyers

Madison’s real estate market is competitive, and sellers prefer strong offers. A VA loan-backed buyer is seen as a reliable borrower, thanks to government backing.

VA Loans vs. Conventional Loans: Which One is Right for You?

Feature	VA Loan	Conventional Loan
Down Payment	$0	5-20%
Interest Rates	Lower	Higher
PMI Required?	No	Yes (if <20%)
Credit Score	More Flexible	Stricter
Closing Costs	Limited	Higher

Final Thoughts: Should You Choose a VA Loan in Madison, WI?

If you’re eligible for a VA loan, it’s almost always the better choice over a conventional loan. With zero down payment, lower interest rates, and no PMI, you’ll have more financial flexibility when buying a home in Madison, WI.

As Mike Schroeder put it, “Veterans have earned these benefits—why not use them? A VA loan can put you in the best position to buy the home you deserve.”