Even though there has been millions of Veterans that have bought a home using their VA Benefits, there are still things that Veterans may not know about the VA Home Loan. Hopefully this article will bring some light to the amazing product, the VA Home Loan.
1. They do not have mortgage insurance.
Do you ever talk yourself out of buying a home because you don’t want to pay the mortgage insurance due to not having a down payment? Well with a VA Loan there is no down payment necessary which means, no mortgage insurance. For you, this means more money in your pocket!
2. VA Loans are only for certain types of homes.
Usually the VA Loan is designed for properties that are ready to move in to. You aren’t going to use a VA Loan to buy a home to do remodels on it then resale 6 months later, or you aren’t going to buy a working farm. It needs to be single-family homes, condos, modular homes, and other type of homes may be accepted.
3. In addition, VA Loans are for primary residences only.
We all want that vacation home in the Bahamas, but don’t even try to use your VA benefits to purchase it. VA Loans are for your primary residence home only.
4. Foreclosed or have a bankruptcy? No problem.
Members of the military who have had history with bankruptcy or foreclosure are not counted out when it comes to the VA Loan, even if the foreclosure came on a VA mortgage loan.
5. The does come with a mandatory fee.
Even though there isn’t any mortgage insurance or no down payment, there is a mandatory fee, which is about 2 percent of the loan amount. This is used to keep the program going for other Veterans who will buy or refinance in the future. BUT if you have service related disabilities this fee can be rolled into the loan or waived entirely.
This list is not exhausted, there are plenty of questions people have about the VA loan and that is why it’s important to ask questions. Call us at 360.571.5626 or email us Greenwaldteam@creeksidem.com.