Veterans, like any homebuyer, have a lot of questions when it comes to purchasing a new place to live. The U.S. Department of Veterans Affairs has created VA loans to assist veterans and other service men and women on their journey to become homeowners.
A VA loan is meant to help make receiving a loan to buy a home easier and more affordable. If you're a veteran looking to purchase a house, the experts at Veteran's Choice are here to answer any questions you may have.
What is a VA Loan?
A VA loan, Investopedia explains, is a mortgage loan available through the U.S. Department of Veteran Affairs, also known as the VA. These loans are meant to assist eligible individuals, usually veterans and service members, with becoming homeowners.
The VA sets all qualifying standards, dictates the terms of the mortgage and guarantees a portion of the loan. Private lenders, like Veteran's Choice, offer these loans to those eligible in accordance with the VA.
What are the benefits of a VA Home Loan?
A VA Home Loan from Veteran's Choice is meant to make the home buying process easier and more affordable for service members. They are easier to qualify for compared to a traditional loan, and usually no down payment is required. Up to 100% financing is available if the sales price of the home does not exceed the appraised value.
You don't have to be a first-time homebuyer to benefit from a VA loan, and you can reuse the benefit in certain scenarios. These options include - if your VA loan has been paid in full and your home is sold, if your previous loan was assumed by another veteran or if you have a balance on the mortgage and still own your home it's possible, reports Vets First.
Additionally, there are limits on the amount you can be charged for closing costs and there's no early prepayment penalty.
How does a VA loan work?
As per VA Loans, the VA will guarantee a maximum of 25% of a home loan amount up to $113,275. This limits the maximum loan amount to $453,100, which is a reasonable value of the property or purchase price. You still need to provide information on your credit and income along with proof of eligibility.
The loan must be used for a home that is for your own personal occupancy. Private lenders can offer VA loans, and the guaranty means they are protected against loss if you cannot repay the loan in the future. While a lender usually receives a down payment as protection for a loan, in this case, the guaranty replaces this and allows you to obtain ideal financing terms.
What can I do with a VA loan?
According to VA Loans, a VA loan can be used for nearly anything house related. It can be used to buy a home, whether that be a townhouse or a condominium unit in a VA-approved project. In other circumstances, it can be used to build a home or renovate a home.
It's important to note that while manufactured homes can be bought with a VA loan, land must be included with the home and the dwelling itself must be at least 24 feet wide. Make sure to talk to your lender about what you can do with a VA loan before applying.
Who is eligible?
VA Home Loans provide prior, current and Reserve/National Guard members of the Armed Services and certain other government employees with the benefit of home ownership with little or no money down.
You don't necessarily have to be a Veteran to qualify for a VA loan. At Veteran's Choice, you can be eligible if you are any one of the following:
- Active duty personnel.
- Surviving spouses of personnel who were killed in the line of duty as a result of a service-connected disability.
- Certain national guard members and reservists
- Certain spouses of active duty personnel who have been: missing in action, captured in the line of duty by a hostile force or forcibly detained by a foreign government
Review the U.S. Department of Veteran Affairs for more information on specific requirements. If you were honorably discharged, medically discharged or are the surviving spouse of a combat-injured service member, discuss your options with a Judge Advocate General Attorney or your personal financial advisor to determine what benefits you are entitled to. You may need additional forms to apply for a VA Home Loan or Refinance.
How do I show proof of eligibility?
When applying for a VA loan, you will need to get a Certificate of Eligibility from the VA to prove to your lender that you're eligible for the loan. The U.S. Department of Veterans Affairs provides a Request for a Certificate of Eligibility through a VA Form 26-1880.
You will also be asked to provide proof of military service (or adjacent). Providing evidence of service can help to avoid any possible delays for approval even though the VA is sometimes able to establish eligibility without your proof of service.
How do I apply?
If you're ready to apply for a VA Home Loan, look no further than Veteran's Choice. Dustin DiMisa, CEO of InterContinental Capital Group, created Veteran's Choice with those who have served our country in mind. Our program offers less expensive financing options to veteran homebuyers, whether it's their first time purchasing a home or they're settling into their retirement oasis.
Get help with a VA loan today. By providing some general information about yourself and your mortgage, we can connect you with our knowledgeable staff who can provide you with a quote and guide you through the process. You will never have to go through applying for a loan alone. We are dedicated to streamlining what is commonly thought of as a difficult undertaking to help you receive a loan quickly and painlessly.
If you have more questions about VA loans and the home buying process, reach out to one of the experts at Veteran's Choice.