9 Things to Know about VA Home Loans
The USA is rightly proud of the dedication its veterans have shown to this fine country and as a matter of course, are happy to help them purchase a “forever home.” You may be wondering “what is a VA home loan?” and so we would like to make it a little clearer for you.
VA Home Loan Tips
A veterans’ home loan is made by private lenders to eligible veterans and there are some important things to think about before you apply for one:
- VA home loans are only available for your primary place of residence, so you could not use them to buy something like a vacation home.
- Veterans’ home loans are intended for properties which are ready to move into, so if the property you want needs some work, then a VA loan might not be the right one for you.
- These loans are reusable, meaning that you can use your full VA entitlement multiple times, as long as you pay off the loan each time.
- VA home loans are guaranteed by the government, meaning that lenders have more confidence that they will get their money back. This guarantee means you will also enjoy preferential terms and interest rates.
- Even if you have been made bankrupt or suffered from foreclosure, don’t worry, you can still obtain a veterans home loan.
- The guarantee provided by the VA means that you will not need to pay mortgage insurance, meaning a considerable monthly saving – why not treat yourselves to a nice evening out with the family instead?
- Veterans home loans do come with a compulsory fee but this may be waived if you are suffering from disability connected to your service history. It is possible to add this cost, (generally around 2% of the loan amount,) to the loan itself.
- If you want to ‘share’ the loan, (co-borrow,) with someone who is not your spouse or another veteran with an entitlement, you will need to make a down payment.
- There are no penalties for prepayment. For example, if you could afford maybe an extra $100 per month, you could save yourself a huge amount in interest and shave years off the term of the loan. Many lenders will penalize you for this.
All in all, obtaining a Veterans’ home loan means that you will not need to worry unnecessarily, which given the fact that you have served your country, is only right and proper.
Questions? Need help? Contact us today.
The information provided herein has been prepared by a third party company and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.