What is a VA Home Loan and is it right for you? A VA home loan is a mortgage guaranteed by the Department of United States Veterans Affairs, issued by certified lenders. It is an excellent choice for those who have served or is currently serving in the military and their families who want to purchase a home. With this loan, there is no down payment needed nor perfect credit. Therefore, if you’re an eligible veteran, service member or surviving spouse, you are halfway to owning your own home. Reserves or National Guard members also qualify as long as they maintain six years of continuous active duty.
Where Do I Start?
You want to get pre-qualified and pre-approved from a reputable lending company that specializes in a veteran loan. Through this Veterans Affairs program, you can finance 100% of the home’s value up to the county limit. The interest rates are low and easy to be approved. There is no private mortgage insurance to pay, and the terms are considerably more advantageous than a traditional contract. If you at present possess a home and have a veteran loan, you could implement a Streamlined Refinance option where you can refinance a VA to another VA quickly and easily. A Cash-Out Refinance to pay off debts or invest in other ventures continue to be a viable option. These loans never expire and may be used again once paid off. Another hefty bonus is, after living in the house for one exact year, you can rent out the property for an extra stream of income.
Steps To Prepare You For Purchasing Your Home With A VA Loan
1. Even though a veteran loan fully blankets the purchase price, you should save some money to cover the extras. The extras could be closing costs, funding fees, insurance, property taxes, inspection, and amenities like washer/dryer, refrigerator, and new furniture. Reserve a minimum of $10,000.
2. Calculate your monthly payment per month. This will influence the overall cost of the home. Make good use of apps, Redfin, Trulia, and Zillow for a mortgage calculator.
3. The following step is to begin house searching. Search for a good realtor and lender with VA experience. Military community Facebook pages can provide a valuable source of information. With a veteran loan, applicants are allowed up to 4 units. You can live in one unit and rent the other three out. You can also buy a townhome, condo, a vacant lot or a manufactured modular itemized on the VA approved property list.
4. Start researching and surveying the neighborhoods you want to live in. Area Vibes and Trulia are good websites to aid in this area. When used collectively, you can get information on crime rates, school districts, HOA dues, etc.
5. At this time you are prepared to present an offer on a home. After the inspection, Veterans Affairs requests sellers to fix anything wrong with the house. All improvements must produce documentation for a complete appraisal.
While these flexible loans are guaranteed, they come with momentous financial benefits. You will need to carry out your research and shop around. There is a vast number of private lenders, and one of them is the gateway to your home purchase.