Applying For A VA Home Loan? 10 Things You Might Not Know
VA home loans offer great benefits for veterans and military members. Here are 10 things you might not know when applying for a VA home loan:
1. No Mortgage Insurance or Down Payment Required
No down payment makes a VA home loan more affordable. To add to this, there is no mortgage insurance. This can save you thousands of dollars over the lifetime of your loan.
2. Some Can Receive A Funding Fee Waiver
There is a funding fee to help pave the way for other veterans and military persons to access the VA loan. It can range from 0.5% to 3.3% of the total loan amount. Disabled veterans may sometimes get this fee waived.
3. VA Loan Rates Are Lower
If the VA home loan rate quotes you received seem lower than those for other options, thatâs because they are. Estimates put the interest rate difference at roughly .25%, which adds up over 30 years.
4. Use It for a Wide Range of Purposes
VA loans are useful for more than just purchasing your starter home. Here are some of the most surprising options:
- Buy an owner-occupied retirement home in Puerto Rico
- Buy and renovate a fixer-upper
- Tap into the equity of your existing home
5. You Can Buy a Condo
Itâs possible to buy a condo with a VA home loan. Just be aware that the entire building project needs to be approved by the VA. Note that while you can buy condos, you cannot use VA loans to buy co-op units.
6. You Receive Greater Leniency
Because of federal backing on the loan, banks are generally more lenient about financial qualifications. You may still get a loan even with lower credit scores, recent bankruptcies, and foreclosures. It depends on the lender and the full financial picture.
7. The VA Benefits Never Expire
Veterans often mistakenly believe their VA benefits must have expired because they served in the military decades ago. As long as you are in good standing with the military and receive confirmation of eligibility from the VA, you may get a VA home loan.
8. Reuse the VA Home Loan for as Long as You Qualify
How many times can you use your VA home loan benefits? The answer is as many times as you like. You can also receive a one-time restoration after paying off a VA mortgage, which allows you to keep the home and still reuse the benefit.
9. Private Lenders Offer the Loan
There is a common misconception that the VA provides VA loans. The VA guarantees the loan, but private lenders are the ones who offer the loans. Private lenders also determine eligibility for the mortgage based on financial criteria.
10. Surviving Spouses Are Sometimes Eligible
If you are the surviving spouse of a military person, your eligibility may depend on his or her eligibility at the time of passing. Generally speaking, spouses must be unmarried when applying for a VA home loan.
When Youâre Ready To Buy A Home
We are thankful for your service and would be honored to serve you. Request a quote to get your VA home loan purchase or refinance started today with National Home Loans.
