Are you an active-duty U.S. military member, a reservist or a National Guard member? Or, are you a military veteran or a surviving spouse of a veteran? Have you dreamed of owning a home? Well, we have good news for you. You may qualify for a home loan through the Department of Veterans Affairs (VA).
The VA-guaranteed loan program enables people who have served or are presently serving in the U.S. military to purchase a primary residence. However, the VA doesn’t actually loan you the money for home directly. The VA just backs the loans that are provided by private lenders, such as banks and mortgage companies, if you qualify.
Some benefits of a VA Loan include:
- You don’t have to be a first-time home buyer.
- A widow or widower of a service member may apply for a VA loan as long as the spouse’s death was service related.
- No down payment is required (unless the home’s purchase price exceeds its appraised value).
- No private mortgage insurance is required.
- Lenders are limited to how much they can charge you for closing costs.
- You don’t have to pay a penalty fee if you pay off your loan early.
- You can reuse the benefit if you sell your home and buy another one in the future.
- If you sell your home, a qualified individual may be able to assume your loan.
- If you run into problems making your payments, the VA may be able to provide you with some assistance.
To obtain a VA-guaranteed home loan, you need to apply with a mortgage broker or lender who participates in the VA home loan program, such as Grandview Lending in Indianapolis. It is recommended that you get pre-qualified for a loan since you’ll need sufficient income and a good credit score to get a loan. Also, you’ll need to a get a valid Certificate of Eligibility (COE) from the VA, which verifies that you’re eligible for a VA-backed loan. For more information on eligibility requirements, visit the VA website.
It’s important to note that the VA places limits on the amount of liability it will assume, which usually affects how much you can borrow to finance your home. These loan limits can vary by location. To learn more about these loan limits, check the VA website.
At Grandview Lending, we thank you for your service to our country. If you’re eligible for a VA-guaranteed loan and you want to get prequalified for a loan, contact our senior mortgage specialists. They can walk you through the loan approval process and answer any questions you may have. So call 1-866-690-4920 to start the process.
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