8 Things you didn't know about VA Home Loans!

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With so many options for buying a home it is important to weigh the costs and benefits of each. If you are a United States military veteran or surviving spouse you may be eligible for a VA Home Loan. VA loans are a great option and offer many benefits, including no down payment and low rates.
Here are 8 Facts you need to know about VA Home Loans:
  1. VA loans are not issued through the Veteran Affairs (VA) office; however, the VA guarantees a portion of your loan against loss in the case of a foreclosure, or a termination of the loan.
  2. VA loans don’t require a down payment and have low interest rates! Rates are still determined by credit score & history, but they are highly competitive when compared to conventional or FHA loans.
  3. You do not have to carry private mortgage insurance (PMI). This could save you upwards of $100 a month on a mortgage payment!
  4. It is possible to reuse your VA entitlements, making it easier to move into a new home if need be.
  5. In order for the house to be approved for a VA Home Loan it is required to be in “move in ready” condition. VA Home Loans will not cover store fronts, farms or fixer upper homes. There are strict requirements about what types of homes qualify, so it is important to research before shopping for a home that may not qualify. These requirements are for the safety of the veteran, as well as the security of the loan collateral.
  6. You must use your VA Home Loan to purchase your primary residence. There are very few exceptions, so if you are looking for investment properties you will need to consider different loan options.
  7. There are limitations about who can cosign on a VA Home Loan. Approved cosigners include a military spouse or another veteran.
  8. There is one required fee called the Upfront Funding Fee.  It ranges from 2.15-3.3% of the total loan. This percentage can be found on the Certificate of Eligibility that you receive. The fee can, however, be rolled into the closing or waived altogether for veterans with service related disabilities.
To find out if you are eligible for a VA Home Loan, visit https://www.benefits.va.gov/homeloans/.
Interested in talking further with someone about how to get the process started? Contact Christian Financial’s exclusive mortgage partner, Mortgage Center to help find the home of your dreams!

Department of Veterans Affairs, Veterans Benefits Administration, Loan Guaranty Service. (n.d.). VA Home Loans. Retrieved October 24, 2017, from http://benefits.va.gov/homeloans/