Buying a home loan is the biggest financial goal of life; its both fun and exciting. Even if you consider taking a loan, you still have to arrange a big amount to make the first down payment. But, if you are serving the USA through military service, you are eligible for a VA loan!
What Is A VA Loan?
A VA loan is a mortgage loan, which is guaranteed by the United States Department of Veterans Affairs (VA). Military personnel who are serving the U.S. military, reservists and the select surviving spouses can benefit from the VA loan. However, with so many steps involved in the process, taking a loan can become quite complicated.
Basics Of The Loan
VA home loans are quite a unique loan with the fact that it is only for the veterans. Here are some facts you need to consider about VA loan:
You Don’t Have To Pay Any Down payment
One of the biggest advantages of a VA loan is that you don’t have to pay any down payment. No extra money, whatsoever it is. This also means a qualifying veteran who is going to have a VA loan will not be asked to pay any money.
With them, you can buy it immediately without even paying the insurance fee. Besides, it will save you money and will increase your buying capabilities.
Once You Are Eligible, You Will Always Be Eligible
If you have served over 20, 30 or even 70 years ago for a VA loan, you are still eligible for it, even if you have never availed any benefits. Moreover, the eligibility of the loan depends on the length of the time served and the period in which it is served.
To check the eligibility, get your DD form and ask for the VA certificate for the eligibility. You can directly hop to the website where you can check whether not you are eligible to buy a home.
You Can Use Your VA Loan Benefit Over And Over
Your VA loan benefit can be used over and over, which means you can use it as many times as you can. How? Let’s say that you have bought a new home with a VA loan, but now you want to relocate to another area, and you need to sell it. Once you sell your home, clearing all your dues, you can re-use the benefits and can buy another one with VA benefits.
Moreover, eligible veterans and other eligible persons can also get one-time restoration while paying off the loan. This situation arises when you have purchased the home long before and have also paid off the loan. The same also applies, when you refinance the loan.
These Loans Are Available From Local Lenders
Unlike other loans, VA loans are easily available at private companies like credit unions, Private banks, and other mortgage companies. Moreover, the VA loans offer insurance to the lenders and also called as VA guaranty.
They assure the money lenders that all the debts will be repaid, even if the veteran fails to make payments. In simpler words, the VA loan benefits you in both ways: you will not only enjoy all benefits, but will also get the convenience and speed of working with your selected money provider.
Not So Strict Guidelines For Foreclosure, Bankruptcy, And Credit Score
Unlike other loan programs, a foreclosure, bankruptcy, and lower credit score don’t disqualify you from the VA home loan. Moreover, it doesn’t even ask for a minimum credit score to qualify. This, in turn, allows lenders to approve loans that come with a lower credit score.
Undoubtedly, VA loans make the best way for veterans to purchase or refinance a new home. And, now that you know about them finance your home and make your dream project live!