Are you one of the 30 million Americans who is an active military professional, veteran, or the unremarried widow or widower of a veteran? Do you want to buy a home and use your Veterans Administration (VA) benefits? Are you unsure about what a VA loan entails?
Whether you’re a first-time home buyer or not, the loan process can seem overwhelming and difficult. We suggest you contact a reputable mortgage broker to help guide you through the process of qualifying for a VA loan and finding the right mortgage solution for you and your family.
However, the following are some key points you should know about VA loans.
- You can use a VA loan for a single-family house, farm, duplex, condo, or townhome – the only stipulation is, you must live in the home yourself. You cannot use it as a rental property.
- Depending upon the county and state that the home is located in, you may be eligible for a VA loan up to $1 million.
- You must still qualify for a VA loan based upon certain military service requirements to receive a VA Certificate of Eligibility, and you’ll be subject to an income and credit analysis.
- With a VA loan, you can qualify for lower interest rates, which means your monthly payments will be lower.
- No down payment is required, but you do have the option to make a down payment if you have some money saved.
- You’ll be required to pay, or finance into the loan, an up-front VA Funding Fee, which is a small percentage of the loan, depending upon how many times you have used your VA Certificate of Eligibility to buy a home.
- You’ll pay lower closing costs, since certain fees cannot be charged to veterans.
- You don’t have to pay for private mortgage insurance unlike conventional borrowers.
- Your home will need to be inspected by a VA-approved appraiser to ensure it is in move-in condition when you buy it.
- You’re not subject to pre-payment penalties with a VA loan.
- You can use your VA benefit more than once.
To learn more information about VA loans, contact a mortgage broker. Your broker will review your situation with you and help walk you through every step of the process.
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