What You Need to Know About VA Loans

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Jun 14, 2021 Homebuyer blog

What You Need to Know About VA Loans | Reach Home Loans

The dictionary defines veterans as people who served in the military. They protected our country and placed their lives on the line. Many of them have made the ultimate sacrifice so we can keep living in peace, which is why we should always honor them.

The government shows its gratitude by ensuring veterans have the stability of a home. Millions of military personnel get home financing through VA loans.

A VA loan is home financing open to active service members and veterans. They are also available to select military spouses. You can get this loan from private lending companies. But the US Department of Veteran Affairs guarantees the loan. If you already have a house, you can use a VA loan to refinance your mortgage.

To get prequalified for a home loan, you must be in the military or have served. You must serve 181 consecutive days on active duty during peacetime. You also qualify if you have served 90 consecutive days during wartime. Individuals who served in the National Guard or Reserves for at least six years also qualify. Spouses of veterans who died in the line of duty can also apply for a VA loan. Families of veterans who died due to disability qualify too.

Are you ready to grab this opportunity and apply? Here’s what you need to know about VA loans.

VA Loans Do Not Require Down Payment | Reach Home Loans

There’s No Down Payment

 

The best thing about a VA loan is there’s no down payment. Banks and other conventional lenders need a down payment of three to five percent. If you’re buying a house worth $250,000, you need to come up with $12,500 first. You don’t have to spend years saving. A VA loan lets you buy your dream house immediately. You also don’t have to pay any mortgage insurance fees.

One thing military personnel ask is where to get a loan? While the VA loan has backing from the Department of Defense, you will apply at a private lending company. The government vets and approves these lenders.

You Can Use VA Loan Many Times

What you need to know about VA loans is you can use them many times. If the house you bought with a VA loan is no longer enough for your needs, you can sell it. You can apply for another round of financing if you’ve paid off the loan. You can also apply for another VA loan to buy a second home. You must pay the previous loan in full first, though.

Eligibility Never Expires

Eligibility for a VA loan is a lifetime thing. It doesn’t matter if you served five, 25, or 50 years ago. You can still apply for this loan if you establish eligibility. The loan depends on the length of service and when you served. If you are a US Air Force veteran who served 90 days during Desert Storm, you are eligible.

You can check your eligibility with DD Form 214. You can request a Certificate of Eligibility from the Veterans Affairs website. A VA-sanctioned lending company can also ask for this certificate on your behalf.

It has Low-Interest Rates

The Veterans Affairs office is the best place to get a home loan. Aside from no down payment, the interest rates are .25% lower than other conventional loans. It is a low-risk loan because the Veteran Affairs covers the mortgage.

VA loans also have low foreclosures. This is because service personnel are serious about owning their homes. This means lenders are more confident about giving lower rates and monthly payments.

Use It to Refinance Your Mortgage

You can also use this loan to refinance an existing mortgage from another lender. You don’t have to apply with the lender holding the original lien. A VA loan mortgage is more competitive than bank loans because it has lower interest rates. It also makes sense to use a VA loan if you want lower mortgage rates. You can also use it to change from an adjustable to a fixed-rate mortgage.

You’re Not Required to Live in It

Your application for a mortgage loan comes with several conditions. One is the property you are buying will be your primary home and your main address. You are not required to live in it, though. The loan terms acknowledge that deployment to another country is possible. Or you have a temporary duty in another state. But your spouse or immediate family members can live on the property on your behalf.

Choosing Different Housing Types | Reach Home Loans

You Can Buy Different Housing Types

 

You can use this first-time home buyer loan for different home types, and you can get a home in the suburbs. City dwellers can choose a townhouse or a condo unit. But as mentioned before, it should be your primary home.

The property must be “real property” so that it is taxable. This means it should have a fixed foundation. You can’t use a VA loan to buy an RV or a houseboat, and you can’t use this to buy an investment property either. But you can buy a property with up to four units as long as you will live in one of the units.

Did you find the article informative? You should also read this post on how to access your earned equity. It is informative and enlightening.

Enjoy the Benefits of Your Labors

Are you ready to set down roots? Reach Home Loans can help you. We are one of Florida’s top mortgage lenders. Our loan specialists will help you choose the best loan for your needs. We will also guide you so you can buy a home hassle-free. We offer conventional, FHA, and VA loans. You can call us at 954-703-1465. You can also contact us at www.reachhomeloans.com/contact-us. We’ll answer any questions you have.

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