The VA home loan was created in 1944 to help returning veterans purchase a home without needing a down payment or credit. This allows the home buying process to be simple and pain free. This is not just simply for veterans but also designed for all military personnel. To get more information on eligibility click here. Now on to the top 5 things you should know about VA home loans.
#1 Are You Qualified for a VA Home Loan in the First Place?
There is a lot of research to be done on VA home loans but one of the most important things that you should know is whether or not you are eligible to receive a VA home loan in the first place. In order to qualify you need to be one of the following;
- Active duty personnel
- National guard member
- Some surviving spouses
Before you spend lots of time researching your options, you need to figure out if you fall into one of these categories before proceeding in the qualification process.
#2 Do You Need a Down Payment for a VA Home Loan?
Good news, after you become qualified there is no down payment required to receive this loan to find your new home. This is one of the biggest advantages to a VA loan because most loans require a down payment of some sort but with a VA loan it is automatically a $0 down payment. Which means you can get started right away on finding your new home,
#3 Can You Move Houses With a VA Home Loan?
This benefit is forever. If you ever plan on moving your VA home loan can go with you. This is not a one use kind of deal, you can use your VA home loan again and again to find a new home in a new place. You can always apply for a VA home loan even if you have used it before. Guess what, you can use it again. If you move or just have outgrown your current home, a VA home loan is always here to help.
People often ask the question if they can still buy a new home today with a VA loan if they already used it. And the answer is, yes! You can. This benefit never expires depending on your eligibility.
#4 Is a VA Home Loan the Best Loan?
VA home loan rates are lower than conventional loans by about 0.25%. These loans also come with lower foreclosure rates as well. Overall VA home loans are the way to go when trying to find a new home. What makes the VA home loan more unique from other VA benefits is that this is a benefit that is available through private companies instead of just the government. Which creates a relationship with local companies that know the area of where you are trying to buy the best.
#5 Can VA Home Loans Be Used for Unconventional Homes?
There are way more than just five things that you should know before looking into a VA home loan but these are some of the top contenders that you should know for sure before applying for a VA home loan. The last but certainly not least key information that you should know is that VA home loans are only accepted for certain types of homes. A few examples are;
- Manufactured homes
- Modular homes
- New construction
These are all of the housing options when you use a VA home Loan to buy a new home. With these options also comes limitations to look into so you can make sure that your dream home is also within your dream budget.