In today's market there is generally nothing to gain by obtaining a Adjustable Rate VA Loan. In fact we have a NO ARM policy that unless specifically asked for we will never recommend that any borrower, Veteran or not, obtain an Adjustable Rate Mortgage. Here's how an ARM works: The adjustable rate loan, where interest may be adjusted one percent annually, up to five percent over the duration of the loan period. With rates only a percent or two off of the lowest rates we've seen in a generation the odds of your rate going down is small and even then only a small amount but the odds that it will go up by 5% during the term of the loan leave little reason to choose an ARM. Also the base or starting rates of ARMs are currently just a bit higher than fixed rate mortgages. In the end analysis it doesn't matter if you are going to stay in your new home for 3,4 or 20 years the ARM will generally not make financial sense in today's market.
The VA is in the business of loan guaranty, but the choice of which loan to take is strictly up to you. It's also a good idea to look for businesses who make a habit of cultivating customers who are veterans--you may find their expertise in VA matters quite valuable to reduce unnecessary waiting times on paperwork.
For additional information feel free to contact me directly @ (832) 519-0695) or email me @ henry@GoToEquityMortgage.com